08, July 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro decreased against the dollar after the weak Industrial PMI in Germany. The index showed a decrease by 1.3%.

Current situation

The pair remained under pressure. The EUR/USD is in a descending channel. Its low limit resides at the mark 1.1035, its upper limit is at 1.1111. Even though the instrument grew to the local high at 1.1111 on Wednesday the euro failed to reach the key resistance at 1.1130. The immediate support is seen at 1.1050, the resistance stands at 1.1130.

The pair traded below the 200-EMA which is currently seen as a resistance in the 1 hours chart. The 50, 100 and 200 EMAs direction is downwards in the 4 hours chart, it indicates a downtrend. The RSI decreased and is below the 50 level. MACD is in neutral area, close to the centerline. The indicators are still bearish.

Trading recommendations

The EUR/USD is under pressure. A break below 1.1050 would open the door to 1.1000. Otherwise the price will grow to 1.1130.