12, October 2016

EUR/USD (a 4-hour chart)

General overview

The EUR/USD traded lower on Tuesday on the back of the strong dollar. The revived hopes for the Fed rate-hike supported the US currency. The euro ignored the positive Economic Sentiment report in Germany.

Current situation

The pair opened on a weaker note on Tuesday. The euro continued to lose its value. The EUR/USD pair faced a selling pressure and softened towards 1.1100. After reaching the level the price broke it and continued its decline. The moving averages are heading lower in the 4 hours chart. The 50 and 100 EMAs crossed the 200-EMA downwards. The resistance comes in at 1.1100, the support stands at 1.1070.

MACD remained in the negative area. The MACD histogram decreased which indicates the sellers’ strength. RSI is going south which confirms the current downward movement.

Trading recommendations

The pair maintained its bearish tone. We prefer to sell towards the next support level 1.1070. We do not exclude a recovery towards 1.1130.