24, October 2016

EUR/USD (a 4-hour chart)

General overview

The dollar traded near fresh 7-month highs on the final trading day of this week. The EUR/USD pair edged lower as the latest M. Draghi's remarks weighed on the euro, at the same time the U.S. rate hike hopes supported the US dollar.

Current situation

Bears have the ball now. Sellers pushed the euro lower, the price broke the level 1.0900 and headed towards 1.0830. The pair continues developing well below the moving averages in the 4 hours chart. The moving averages (50, 100 and 200) keep heading lower. The resistance comes in at 1.0900, the support stands at 1.0830.

MACD is negative. MACD decreased which confirms the strength of sellers. The RSI indicator is within negative territory, favoring a new move lower.

Trading recommendations

The EUR/USD pair is heading towards 1.0830. Should that level break down and the price will decline to 1.0780. We also expect a profit taking from bears after three-day sell-off. The prices may recover to 1.0950.