07, September 2016

EUR/USD (a 4-hour chart)

General overview

A weaker-than-expected Non-Manufacturing PMI softened the dollar and sent it to the monthly low.

Current situation

The pair traded under pressure, the price remained close to 1.1130 in the Asian and European sessions on Tuesday. The instrument grew on the back of a weak Non-Manufacturing PMI during the North American hours. The pair broke the level 1.1200 and trended towards 1.1270. The EUR/USD broke the 50, 100 and 200 EMAs and headed north from them in the 4 hours chart. The resistance is seen at 1.1270, the support stands at 1.1200.

MACD grew which indicates the sellers’ positions weakening. RSI is growing towards the overbought area.

Trading recommendations

A break above 1.1270 would open the way to 1.1350. Should the price return below the 1.1200 level and the way towards 1.1130 will be opened.