24, June 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

PMI Composite from Markit in the Eurozone came out worse than expected. However the euro ignored the news, the referendum in the UK was in the spotlight the whole day. The weakening of the dollar pushed the European currency upwards.

Current situation

The pair showed a mix dynamics yesterday still the growth was its main tendency. The quotes grew during the Asian and the European sessions and slightly fell at the American one. The EUR/USD pair is at the upper boundary of the descending channel. The resistance is at 1.1370, the support lies in at 1.1300.

MACD grew during the day. The indicator is in the positive area. If the indicator remains in the positive area its signal will be bullish. RSI is close to the overbought level. If RSI enters the overbought area that will be a buy signal. The Moving Averages (50, 100 and 200) are parallel to each other. The SMAs direction is horizontal. The price is above the Moving Averages.

Trading recommendations

If the market preserves a growth sentiment the euro will keep growing. The pair EUR/USD is close to the strong resistance and it might bounce downwards. If the instrument grows it will reach the level 1.1450. Otherwise it will decrease to 1.1250.