28, July 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The dollar attracted everyone’s attention yesterday in light of the Fed meeting. The USA regulator left its rate unchanged.

Current situation

The pair presented a modest bearish tone during the day. The trading instrument spent the day at the level 1.1000. However, the pair grew after the Fed meeting results announcement. The resistance is seen at 1.1030, the support stands at 1.1050.

MACD indicator is close to the centerline. If the histogram enters the positive territory, that will indicate buyers’ growing strength. If MACD returns into the negative area the sellers will return control over the market. RSI grew to the overbought level.

The 1 hour chart showed that the price broke the 50, 100 and 200 EMAs. The 50, 100 and 200 EMAs are turning upwards.

Trading recommendations

The overall outlook remains bearish. However, the pair resumed its growth. If the EUR/USD keeps growing the level 1.1130 will be reached soon.