EUR/USD (a 4-hour chart)
The euro strengthened and approached Tuesday’s high on Wednesday. There were no many macroeconomic releases in the EU. Investors’ attention now turns to the possible ECB's quantitative easing plans tapering.
In the medium term, the outlook is neutral. The EUR/USD rebounded from the 1.1150 level. The rally stopped at 1.1230, the price was in a consolidative range above 1.1200 during the European hours. The ongoing recovery could also be attributed to some profit taking from sellers after a sharp decrease on Monday. The pair moved down ahead of the US opening. The moving averages are neutral in the 4 hours chart. The resistance comes in at 1.1250, the support stands at 1.1200.
MACD indicator is at the centerline. If the histogram enters the positive territory, that will indicate buyers’ growing strength. If MACD returns into the negative area the sellers will take control over the market. RSI is heading south.
We prefer to stay neutral ahead of Non-Farm report. Technically the downtrend remained intact. As the most probable scenario, we expect a slow decrease below 1.1200.