14, June 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The risk aversion and the growth of the pair EUR/GBP supported the euro. The economic calendar was empty on Monday as a result we had a low volatile day. Now the attention of the market is turned to the Fed meeting.

Current situation

The pair EUR/USD spent almost the whole Monday at the level of 1.1250. The pair consolidated after a sharp decrease that had happened last week. The quotes began its correction during the American session. The EUR/USD managed to test 1.1300. The resistance is at 1.1300, the support is at 1.1250.

MACD is in the negative area. MACD decreased, that is a sell signal. RSI bounced from the oversold area. That is a buy signal. The rebound above 1.1250 should be considered corrective. The 50 Moving Average is directed downwards, that is a sell signal

Trading recommendations

The market looks bearish. We feel comfortable taking short-term sell positions. Shall the pair decrease it will fall to 1.1130. We also do not exclude a corrective growth to the level 1.1370 if the price bounces upwards from the Moving Averages (50, 100 and 200).