24, November 2016

EUR/USD (a 4-hour chart)

General overview

The euro edged higher on the back of the Business Climate report in Germany. Besides the dollar retracement amid Thanksgiving day helped the euro to strengthen.

Current situation

The EUR/USD had a positive day on Thursday. The price remained in a descending channel. The pair rebounded from its recent lows and regained some lost footing versus its American counterpart. Traders pushed the euro higher and broke 1.0550 ahead of the European opening. The current rebound we consider corrective. The price remained below the moving averages in the 1 hour chart. The 50, 100 and 200 EMAs extended their decline in the same chart.  The resistance is at 1.0600, the support comes in at 1.0550.

MACD remained at the same level which confirms the strength of sellers. RSI bounced off the oversold area.

Trading recommendations

The EUR/USD pair might extend its recovery if it breaks 1.0600. After breaking the level the price will move towards 1.0650. A failure here will return sellers who will push prices towards 1.0500.