EUR/USD (a 4-hour chart)
Economic Sentiment in Germany has fallen to its lowest level for 4 years. The uncertainty regarding the further world economy prospects after the Brexit was the main reason which influenced the sentiment. This news weighed on the euro. Moreover, Housing Starts rose more than expected in the USA which supported the dollar.
The EUR/USD closed bearish yesterday. Technically, the pair is in a descending channel. The price formed a new lower low at 1.1000 (the strong psychological support). The instrument lost about 0.53% during the course of the trades. The resistance is seen at 1.1050, the support lies at 1.1000.
MACD is in the negative area. The histogram decreased which indicates the sellers’ strength. RSI returned to the oversold area, its signal line decreased that also indicates sellers’ strength.
The price moved from the 50-EMA which still acts as a resistance. The moving averages (50, 100 and 200) are moving downwards which is a sell signal.
We preserve a short-term bearish outlook for the EUR/USD pair. If the price breaks the support 1.1000 the instrument will advance towards 1.0900.