07, October 2016

EUR/USD (a 4-hour chart)

General overview

The euro decreased despite strong Factory Orders in Germany. Erkki Liikanen's comments weighed on the single European currency. According to Liikanen low interest rates and aggressive bond buying are necessary to support the Eurozone’s economy.

Current situation

The market was quite this Thursday. The euro kept on declining after a sharp growth at the start of the week. The price traded lower 1.1200 towards 1.1150 during the European session. The EUR/USD pair broke the moving averages downwards in the 4 hours chart. The moving averages are neutral. The resistance comes in at 1.1200, the support stands at 1.1150.

MACD is in the negative area. RSI is approaching the negative territory.

Trading recommendations

The pair will remain under pressure until it gets new upbeat drivers. Investors’ attention now turns to the US nonfarm payrolls report. The price may dip further on the back of the stronger NFP report. As the most probable scenario, we consider further moving downwards to the levels 1.1150 and 1.1100. On the other hand, the currency pair may grow back above 1.1200.