09, August 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The Euro remained under pressure on Monday. Positive Industrial Production in Germany and Investors Confidence from Sentix were not able to support the single currency.

Current situation

The EUR/USD traded within Friday's close on Monday. The pair was unable to recover the 1.1100 level. The short term picture is neutral. The resistance is seen at 1.1130, the support stands at 1.1050.

The indicators generate a sell signal. MACD is negative. The MACD remained at the same level which confirms the strength of sellers. RSI remained close to the oversold area.

In the 4 hours chart, the price broke the 50, 100 and 200 Day EMAs downwards and remained just below them. The moving averages are turning downwards.

Trading recommendations

We are bearish on the pair. We expect a break of 1.1050 and a further move towards the recent lows at 1.1000.