16, August 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The dollar softened against its main rivals as the disappointing U.S statistics kept weighing on it.

Current situation

The euro strengthened on Monday on the back of the weak dollar. Traders were able to push the price upwards to the 1.1200 region. The resistance is seen at 1.1200, the support stands at 1.1130.

MACD is in the positive area. The histogram grew which indicates the buyers’ strength. RSI approached the overbought area. Indicators generate a buy signal.

The price is moving away from the 50, 100 and 200 EMAs in the 4 hours chart. The moving averages range is expanding, the 50-EMA is moving away from the 100 and 200 EMAs. Moving averages generate a buy signal.

Trading recommendations

The price approached the resistance 1.1200. If the EUR/USD breaks the level the growth trajectory will be continued towards 1.1270.