19, October 2016

EUR/USD (a 4-hour chart)

General overview

The dollar weakened against its main peers as the disappointing U.S. data keep weighing on it.

Current situation

The EUR/USD pair remained in a near-term descending channel on Tuesday. The price bounced off its lower limit, approaching its upper boundary during the first part of the day. The current recovery might be bears' profit taking after last week decline. The pair faced another selling pressure at the NY open. The EUR/USD gave up its recent gains and moved below 1.1000 towards 1.0950. According to the 1 hour chart the recovery action was limited by the 100-EMA near the 1.1000 region. The price bounced from the line and moved downwards. The moving averages (50, 100 and 200) keep moving lower. The resistance comes in at 1.1000, the support stands at 1.0950.

MACD remained in the negative area. MACD decreased which confirm the sellers’ positions strength. The RSI oscillator moved downwards.

Trading recommendations

A downtrend will start as soon, as the EUR/USD pair consolidates below the level 1.1000. The level 1.0950 is the first sellers’ target.