16, September 2016

EUR/USD (a 4-hour chart)

General overview

A weak retail sales report slightly softened the U.S. dollar. However, the growth of the euro was limited by the weak statistics in the EU. The USA published Initial Jobless Claims report which came in better than expected.

Current situation

The pair remained in the middle of the consolidation range. The EUR/USD went back and forth during the course of the session on Thursday. The support level 1.1200 together with the 50 and 100 EMAs provided a support for the instrument. The moving averages maintained a moderately bullish slope in the 4 hours chart. The resistance is seen at 1.1270, the support stands at 1.1200.

MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI is neutral.

Trading recommendations

As the most probable scenario, we consider further moving downwards towards the level at 1.1200. After breaking the first target the price will advance towards 1.1130.