EUR/USD (a 4-hour chart)
The EUR/USD strengthened on the back of stronger Services PMI in the EU on Monday.
The EUR/USD pair opened on a weaker note on Monday. The price remained near last week low during the day. The pair bounced off the border of the oversold zone and reversed some of its losses in the European session. The price grew to 1.0900 where the upward momentum faded. According to 1 hour chart the price remained below the moving averages which are all pointing lower. The resistance comes in at 1.0900, the support stands at 1.0830.
The MACD chart slightly changed from last week. MACD grew which indicates the sellers’ positions weakening. The RSI indicator continues consolidating within oversold levels.
The longer term outlook will be bearish as long as the price holds below 1.1000. The price is oversold and may recover towards 1.0950. We expect a downtrend will continue in the nearest time.