29, June 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro remained under pressure as uncertainty regarding the Brexit continued to cloud the prospects of the whole EU. Yesterday Mario Draghi (the ECB President) gave his speech. There were not anything specific about the current monetary policy. However, Mario Draghi noted that the Central Banks should better coordinate the monetary policies of their countries to cope with the deflationary pressure.

Current situation

The course of the pair tried to stabilize yesterday. The instrument grew and set a new local high at 1.1111. Technically, the EUR/USD remained in a narrow downward trending channel. The resistance stands at 1.1130, the support lies in at 1.1000.

MACD remained in the negative area, its histogram grew yesterday. The indicator will give sell signals until it leaves the negative area. 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 (50, 100 and 200) which are moving downwards, that is a sell signal. The 200-day moving average is a strong resistance for the euro.

Trading recommendations

The pair may continue its growth. If the EUR/USD consolidates over 1.1130 the growth maybe continued to 1.1200. The nearest sellers’ targets are the support levels 1.1000 and 1.0900.