18, July 2016

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

This week the ECB will hold the meeting regarding its monetary policy which may become a driver for the single currency if Draghi makes unexpected statements.

Current situation

The EUR/USD unexpectedly dropped and lost about 0.74% on Friday. The overall picture is bearish now. The resistance is seen at 1.1050, the support lies at 1.1000.

MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. RSI approached the oversold area.

The 4 hours chart shows that the price bounced off the 200-EMA. The pair left behind the 100-EMA and the 50-EMA which is a sell signal.

Trading recommendations

The pair may recover to 1.1080 to resume its downward trajectory towards 1.0900.