10, August 2016

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The euro traded in a tight range while the dollar was under pressure all over the board. The demand for the euro is limited by the European stocks strengthening.

Current situation

The tone is still negative in the market. The pair spent the day in a narrow range locked in-between 1.1080 – 1.1100. The instrument tried to regain the 1.1130 level, but failed. The price spiked and returned into the range. The resistance is seen at 1.1130, the support stands at 1.1050.

MACD remained in the negative area. MACD grew which indicates the sellers’ positions weakening. RSI stayed close to the oversold area.

The moving averages are forming a narrow range in the 4 hours chart. The price tried to break the 50, 100 and 200 Day EMAs upwards, but failed and returned below the 200-EMA which acts as a resistance.

Trading recommendations

The EUR/USD is under pressure. The price will meet the further downside pressure after breaking 1.1080 downwards.