26, October 2016

EUR/USD (a 4-hour chart)

General overview

The EUR/USD was little changed on Tuesday despite strong Business Climate and Expectations in Germany.

Current situation

The euro was little changed on Tuesday. The common currency remained below the level 1.0900 during the day. The price traded in a tight range between the mark 1.0865 and the level 1.0900. The pair stayed below the 50-EMA in the 1 hour chart. The 50-EMA acted as a resistance for the price, rejecting its attempts to grow. The 50, 100 and 200 EMAs kept heading lower in the mentioned time frame. The resistance comes in at 1.0900, the support lies at 1.0830.

MACD remained in the negative area. MACD grew which indicates the sellers’ positions weakening. The RSI is within oversold area.

Trading recommendations

The pair may extend its recovery if it breaks the level 1.0900 upwards. In this scenario the EUR/USD may grow to 1.0950. The level 1.0830 remains the next probable bearish target.