10, October 2016

EUR/USD (a 4-hour chart)

General overview

The euro remained under pressure against the US dollar despite the weak Nonfarm Payrolls report.

Current situation

The market was neutral in the European session on Friday as investors waited for the NFP report. The euro broke the 1.1150 level and tested 1.1100 (two-month low) where it seems to have found a descent support. After testing the level 1.1150 the price rebounded and headed towards 1.1250. The 50, 100 and 200 EMAs are turning lower in the 4 hours chart. The price broke the moving averages upwards in the mentioned timeframe. The resistance comes in at 1.1200, the support stands at 1.1150.

MACD grew which indicates the sellers’ positions weakening. RSI bounced from the oversold area.

Trading recommendations

The EUR/USD is still under pressure and remains vulnerable to further downslide in the near-term. A close below 1.1100 will extend losses towards 1.1070. We will place buy orders if we see a daily closing above 1.1200. Meanwhile, any move above 1.1100 we consider corrective.