28, October 2016

EUR/USD (a 4-hour chart)

General overview

There were no major events on the schedule in the EU. The market was focused on Initial Jobless Claims and Durable Goods Orders releases.

Current situation

The EUR/USD pair was weak during the Asian hours on Thursday. The price touched the level 1.0900 where the downward momentum faded. The pair bounced off the level and was able to strengthen, reversing some of its losses in the European tardes. According to 1 hour chart the price is above 100-EMA which provides a solid support for the euro. The 50 and 100 EMAs are neutral, while the 200-EMA is heading south. The resistance comes in at 1.0950, the support lies at 1.0900.

MACD grew which indicates the sellers’ positions weakening. RSI is neutral.

Trading recommendations

The level 1.0900 limits the euro weakening. Should that level break down and the EUR/USD may move to 1.0850. A daily close above 1.0950 will ease the downward pressure and will allow the common currency to strengthen towards 1.1000.