21, September 2016

EUR/USD (a 4-hour chart)

General overview

 The dollar weakened on Tuesday. Traders were cautious ahead of BoJ and Fed meetings.

 Current situation

 The pair tried to regain the level 1.1200, but failed. The euro bullish spike faded and the pair dropped below the level 1.1200. The 4 hours chart shows that the price briefly broke the 50, 100 and 200 EMAs and immediately rolled back. The EUR/USD was below the 200-EMA at the start of the North American session. The 50-EMA is crossing the 100-EMA downwards in the mentioned timeframe. The moving averages direction is downwards. The resistance is seen at 1.1200, the support stands at 1.1130.

 MACD remained at the same level which confirms the strength of sellers. RSI is within the negative territory.

Trading recommendations

 The EUR/USD pair is neutral now. We recommend staying out of the market before the Fed meeting. The dollar may strengthen towards 1.1050 on the back of the Fed decision to raise the rates. Alternatively, the price will jump towards 1.1300.