30, August 2016

EUR/USD (a 4-hour chart)

General overview

The dollar was stable on Monday on the back of J.Yellen's comments plus previous comments by FOMC’s officials which intensified expectations of a potential rate hike by the Fed at the September meeting.

Current situation

The EUR/USD continued to decrease on Monday and found a decent support in the 1.1170 area in the North American session. The resistance is seen at 1.1200, the support stands at 1.1130.

The indicators MACD and RSI resumed their declines within negative territory. MACD indicates the sellers’ strength. RSI entered the oversold area.

The price broke downwards the 50, 100 and 200 EMAs in the 4 hours chart. The moving averages are turning downwards and generate a sell signal.

Trading recommendations

All eyes are right now at the support level 1.1130. If the price breaks this support, the instrument may fall further that should send this market looking for the 1.1070 level.