19, September 2016

EUR/USD (a 4-hour chart)

General overview

The dollar grew on the back of a better-than-expected U.S. consumer price index.

Current situation

The main currency pair left the flat after a strong consumer price index report. The euro got under intense selling pressure at the start of the North American session. Sellers pushed the price lower below 1.1200. The instrument headed towards the next support at 1.1130. The pair broke the moving averages down in the 4 hours chart. The moving averages (50, 100 and 200) are turning downwards. The resistance is seen at 1.1200, the support stands at 1.1130.

MACD is within the negative territory now The RSI oscillator is heading south.

Trading recommendations

Should the pair consolidate below 1.1200 the EUR/USD will continue its downward movement. The level 1.1130 is the next sellers’ target.