30, September 2016

EUR/USD (a 4-hour chart)

General overview

The latest U.S. statistics revived hopes for a rate hike by the Fed till the end of the year. The euro weakened on the back of the weak Unemployment Change report in Germany.

Current situation

 The EUR/USD pair found a support around 1.1200 and traded modestly flat on Thursday. The price remained inactive between 1.1200 and 1.1230 during the European trade. The moving averages (50, 100 and 200) are still 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

In the event that the sellers manage to force the below 1.1200 the price will move towards 1.1150. However, we consider that scenario as an alternative. We expect a further growth towards 1.1250.