22, September 2016

EUR/USD (a 4-hour chart)

General overview

The BoJ decision to leave the rate unchanged did not impact the pair. The EUR/USD was unmoved during the European trade on Wednesday as investors remained cautious ahead of the Fed meeting results.

Current situation

 The euro got under selling pressure during the Asian session on Wednesday. The lowest trading price was marked at 1.1120 (the lowest mark since August 21st). The price turned around and recovered back to the opening level – 1.1150 in the middle of the night session. The 50-EMA crossed the 100-EMA downwards and is crossing the 200-EMA now. All moving averages are heading south which confirms the sellers’ strength. The resistance is seen at 1.1150, the support stands at 1.1100.

 MACD remained in the negative territory. RSI consolidated within the oversold area.

Trading recommendations

 The pair will mostly depend on the US data on Wednesday. If the Fed changes the rates the price may decline further down towards 1.1100 and 1.1050. If the US Central Bank maintains its rates unchanged the euro may strengthen towards 1.1200 and 1.1250.