20, September 2016

EUR/USD (a 4-hour chart)

General overview

The dollar weakened and erased some of its gains which were recorded on Friday due to the positive U.S. statistics which revived hopes of a Fed rate-hike in September.

Current situation

The technical picture presents a slightly bearish tone. The main currency pair found a descent support around 1.1130. The price comes across a selling pressure on any up-move towards 1.1200. The 50-EMA is crossing the 100-EMA downwards in the 4 hours chart. The 50 and 100 EMAs are pointing lower, the 200-EMA is neutral. The resistance is seen at 1.1200, the support stands at 1.1130.

MACD is negative. MACD decreased which confirms the strength of sellers. RSI is in the oversold area.

Trading recommendations

We believe the EUR/USD will remain neutral in the short term. The price will be confined to the tight range between 1.1130 and 1.1180.