27, September 2016

EUR/USD (a 4-hour chart)

General overview

The euro strengthened on the back of the strong Germany statistics. The euro/dollar stayed in a narrow range amid a risk aversion on Monday.

Current situation

The euro preserved its positive near-term tone on Monday. The pair kept recovering after bouncing from the level 1.1200. The price approached the 1.1250 level in the middle of the European trades and broke it at the start of the North American session. The 50, 100 and 200 EMAs are still neutral. All lines act as a support for the quotes. The resistance is seen at 1.1300, the support stands at 1.1250.

The histogram grew which indicates the buyers’ strength. RSI approached the overbought area.

Trading recommendations

A clear break above the level 1.1250 will indicate growing buyers’ strength. Buyers will lead the price towards the closest resistance at 1.1300.