12, July 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The strong US employment data supported the dollar. The labour market continued to encourage investors that the USA economy will keep recovering.

Current situation

The EUR/USD has been trading in a range for 3 weeks now. Yesterday the pair remained under pressure in the red zone, the trades were neutral. The resistance is at 1.1130, the support comes in at 1.1050.

The indicators recommend short positions. MACD is in the negative area that confirms sellers’ strength. RSI is close to the oversold area. If the oscillator continues to grow, it will be a buy signal.

The moving averages (50, 100 and 200) direction is downwards in the 4 hours chart which is a sell signal. The price broke the 50-EMA and tested the 100-EMA which limited its growth in the 1 hours chart.

Trading recommendations

Even though the EUR/USD is neutral the pair is still in a red zone. We believe that the instrument will remain there for a while. A downtrend will start as soon as the pair drops below the support level 1.1000 (a strong psychological level).