12, September 2016

EUR/USD (a 4-hour chart)

General overview

The euro grew after the ECB decision to leave rates unchanged.

Current situation

The euro is still bullish despite last week upside rejection. After climbing to highs above 1.1280 the price retreated to the 1.1270 area where it formed a narrow range on Friday. After a short-term consolidation the price fell further towards 1.1200. The moving averages maintain the bullish slope in the 4 hours chart. The 50-EMA bounced from the 200-EMA and crossed the 100-EMA upwards in the same chart. The resistance is seen at 1.1270, the support stands at 1.1200.

MACD shows a divergence in the 1 hour chart. RSI is consolidating within the overbought territory.

Trading recommendations

If buyers manage to make a breakout of 1.1270 they will push the price towards 1.1350. Conversely, sellers will lead the quotes towards the 1.1200 area.