EUR/USD (a 4-hour chart)
The euro fell against the US dollar due to the strengthening of the US currency and Mario Draghi’s speech. Mario Draghi called on national governments to help the ECB to accelerate the economic growth and the inflation in the region. The regulator warned that the lack of economic reforms makes the task of the Central Bank harder.
The dollar reversed some of its losses yesterday. The pair fell by 0.68%. Traders started to close their long positions that caused the euro sales. The pair fell from the level of 1.1416 to the support 1.1300. The resistance is at 1.1370, the support is at 1.1300.
MACD is in a positive area. The histogram is below its signal line. MACD decreased giving a sell signal. RSI is in a neutral zone giving no signal. The price is above Moving Averages (50, 100 and 200) at the daily time-frame. The Moving Averages crossed each other on the 4 hour time frame, showing that the price changed its direction.
We believe that the pair shall continue its correction and will decrease further. The price may stay for a while on the support at 1.1300 to continue its decrease later. We assume the mark 1.1200 is the sellers’ target.