28, November 2016

EUR/USD (a 4-hour chart)

General overview

The euro strengthened against the dollar despite the empty calendar in Eurozone.

Current situation

The pair had a positive day on Friday. The euro bounced from the multi-months low and recovered. The pair pushed away from 1.0550 towards 1.0600 post-European open. After a brief pause around the level the price extended its recovery toward 1.0623 but failed to move higher. The price broke the 50 and 100 EMAs and headed towards the 200-EMA in the 1 hour chart. The 200-EMA acted as a resistance and rejected the price. The moving averages maintained their bearish slope. The resistance is at 1.0600, the support comes in at 1.0550.

MACD grew which indicates the sellers’ positions weakening. RSI bounced from the oversold area.

Trading recommendations

If the pair stays above the 1.0600 level the price may recover further and test 1.0650. A move higher may neutralize the current selling pressure. The EUR/USD may extend its gains to 1.0700. Otherwise, sellers’ return will send this market to the new lows at 1.0500.