14, November 2016

EUR/USD (a 4-hour chart)

General overview

The euro got support on the back of the Wholesale Price Index in Germany which met traders' expectations. The dollar was supported by talks that Donald Trump may become not so bad President and his new policy may boost inflation.

Current situation

The euro maintained its bearish tone and is now decisively trading below the 1.0900 mark. After a short lived recovery during the Asian hours sellers pushed the price lower dragging it towards 1.0850. Traders struggled hard to break the level but failed to do it on Friday. The daily high was marked at 1.0920 while the lowest price was at 1.0839. The 1 hour chart showed that the price touched the 50-EMA and bounced off the line immediately after testing it. All moving averages are pointing lower in the mentioned timeframe. The resistance is seen at 1.0900, the support could be found at 1.0850.

Technical indicators are now giving bearish signals. MACD decreased which confirms the strength of sellers. The RSI oscillator consolidated within negative area.

Trading recommendations

We await a break below 1.0850 to trigger another leg lower. A break below will increase chances of testing the 1.0800 mark.