23, September 2016

EUR/USD (a 4-hour chart)

General overview

The dollar weakened on the back of the Fed decision to maintain its rate unchanged.

Current situation

Despite the recent growth our outlook is still bearish. The price remained in the descending channel. The pair broke the 1.1200 level overnight and trended towards 1.1250 in the European session on Thursday. The moving averages (50, 100 and 200) narrowed and are neutral now. The resistance is seen at 1.1250, the support stands at 1.1100.

MACD indicator is at the centerline. If the histogram enters the positive territory, that will indicate buyers’ growing strength. If MACD returns into the negative area the sellers will take control over the market. RSI is in the overbought area.

Trading recommendations

The price may roll back towards 1.1200 where it may turn around and presume its growth. Alternatively, if sellers are back in the game the EUR/USD pair will decrease towards 1.1150.