13, July 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

While the markets were analyzing the latest USA Labour Market report, the dollar fell against other major currencies. Investors changed their focus from the Brexit and its consequences to the upcoming Central Banks meetings.

Current situation

The pair EUR/USD rebounded upward from the level 1.1050 and tested the resistance level 1.1130. However the price slightly fell to the level 1.1100 by the end of the trades. The market will present a modest positive tone in the short term. The resistance is at 1.1130, the support comes in at 1.1050.

MACD remained in the negative territory. The indicator is ready to leave it. The histogram is at the centerline. Its growth will show the sellers’ weakness and buyers’ strength. RSI is in the neutral zone giving no signal.

The technical indicators have retreated from the overbought territory. 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 in the 4 hours chart. However the 100-EMA rejected the pair downwards. The price is between the 50-EMA and 100-EMA that act as a support and a resistance. The 50, 100 and 200 EMAs are turning upwards in the 1 hours chart that may become a buy signal.

Trading recommendations

The pair is under pressure. If the EUR/USD does make a breakout at that level 1.1050 the instrument may decrease to 1.1000.