28, September 2016

EUR/USD (a 4-hour chart)

General overview

The EUR/USD traded neutral on Monday as the market sentiment improved after the Presidential debates in the USA. The dollar is still recovering after the Fed decision to leave the rate unchanged.

Current situation

The price broke the resistance 1.1250 and headed north in the European session on Tuesday. However, the upward momentum shortly faded and the quotes returned into the familiar range below 1.1250. Sellers pushed the price lower towards 1.1200 at the start of the North American session. The pair is approaching the moving averages in the 4 hours chart. The 50, 100 and 200 EMAs present a moderately bullish slope. The resistance is seen at 1.1250, the support stands at 1.1200.

MACD decreased. RSI is drifting away from the overbought area.

Trading recommendations

A break above the immediate resistance will trigger the next leg of an upward move for the pair. The main buyers' goals are the marks at 1.1280 and 1.1300. We cannot rule out the chance that the EUR/USD pair will fall to 1.1200. Should the EUR/USD overcome the level and sellers will lead the price to 1.1150.