29, September 2016

EUR/USD (a 4-hour chart)

General overview

The euro reversed some of its losses due to concerns over the Eurozone economy state.

Current situation

The EUR/USD enjoyed a mixed session through trade on Wednesday. The price went back and forth around 1.1200. The euro was under pressure the first part of the day, but was able to recover at the start of the North American session. The price made an attempt to break the 50, 100 and 200 EMAs in the 4 hours chart. The break was short-lived and the price returned above them. The moving averages are neutral. The resistance is seen at 1.1250, the support stands at 1.1200.

MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI is neutral.

Trading recommendations

The short-term picture is quite mixed. The further downward movement is limited by the support 1.1200. If the EUR/USD pair makes another attempt and this time breaks below the level the price may fall towards 1.1150. The nearest bulls' target is the immediate resistance at 1.1250.