24, November 2016

EUR/USD (a 4-hour chart)

General overview

The euro weakened on the back of stronger dollar. The dollar was strong ahead of FOMC minutes. Besides, the possible rate hike by the Fed supports the US currency.

Current situation

The euro continued to lose its value on Wednesday. The price slightly recovered and tested the level 1.0650 in the Asian session. The downward pressure increased ahead of the Europe opening when the price sharply dropped towards 1.0600. The pair broke the 50 and 100 EMAs in the 1 hour chart. The lines appeared to be a tough nut to crack and the pair faced rejection just after testing the moving averages. The 50-EMA is neutral while the 100 and 200 EMAs maintained their bearish slope in the mentioned timeframe. The resistance is at 1.0600, the support comes in at 1.0550.

The MACD histogram decreased which indicates the sellers’ strength. RSI advanced south which confirms the current downward movement.

Trading recommendations

Bears will remain in the driver's seat until the level 1.0650 holds. The level 1.0550 we see as the next intraday support and probable bearish target. Conversely, a break above 1.0650 will trigger the next leg of upward move for the pair.