28, June 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro is under pressure against the dollar due to fears that the Brexit will worsen the prospects for the EU and the euro area economy.

Current situation

The pair showed a mixed dynamics yesterday. The euro made several attempts to recover, still the sellers did not let it to grow. The instrument remained at the same level, near the mark 1.1000. The resistance is at 1.1130, the support lies in at 1.1000.

MACD remained in the negative area. If the indicator remains in there that will be a sell signal. RSI is close to the undervalued area. If RSI enters the area, that will be a sell signal. In the scenario where the oscillator grows we will get a buy signal. The price is below the Moving Averages. The Moving Averages (50, 100 and 200) are moving downwards, that is a sell signal.

Trading recommendations

The EUR/USD is still under pressure. We believe it will fall further and will reach the local low at 1.0900. The pair may grow only to fall from the higher levels.