EUR/USD (a 4-hour chart)
The euro turned bearish on yesterday's trades. The EU and US calendars were light. All investors’ attention focused on upcoming
The euro continued moving lower yesterday. Traders pushed the price to 1.0550 where EUR/USD developed a short-term consolidation in the early trades. The pair ran through fresh offers on European open and accelerated its decline afterwards. Sellers broke below 1.0550 and dragged the single European currency to 1.0500. The price broke the 200-EMA downwards and tested the 50-EMA in the 4 hours chart. The 100 and the 200-EMAs remained flat while the 50-EMA kept moving higher. The resistance is at 1.0550, the support comes in at 1.0500.
MACD decreased which indicates the buyers’ positions weakening. RSI oscillator left undervalued territory and headed south.
We believe the selling interest in the short term will remain intact. A breakout of 1.0500 would aim for next sellers’ target at 1.0450 and 1.0400.