29, July 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro grew to the 2-week highs against the dollar on the back of positive statistics from Germany and Italy. The Fed decision keeps weighing on the dollar.

Current situation

The pair presented a modest bearish tone. The instrument grew to the 1.1130 region where the pair sold off. The EUR/USD closed bearish yesterday. The resistance is seen at 1.1130, the support stands at 1.1050.

MACD is in the positive area. The histogram grew which indicates the buyers’ strength. RSI grew to the overbought level.

The price broke upwards the 50, 100 and 200 EMAs in the 4 hours chart. However, the EUR/USD was not able to hold there and returned below the 200-EMA.

Trading recommendations

The EUR/USD pair is under pressure. If the pressure persists the price will resume the downward movement. In the scenario where sellers return to the market the euro falls to 1.1000.