30, November 2016

EUR/USD (a 4-hour chart)

General overview

The dollar strengthened against the euro on the back of the weak Eurozone data. Business Climate, Economic Sentiment and Services Sentiment in Eurozone came out worse-than-expected weighing on the single currency.

Current situation

The EUR/USD pair spent Tuesday in a quite consolidation. The recent rally was stopped around psychological barrier 1.0700 which rejected prices downwards. Having faced fresh selling pressure the euro sharply dropped to the 1.0550 support region where the pair showed a minor recovery and was able to reverse some losses. The recovery action lost strength around 1.0600 where the pair spent the rest of the European session. Sellers moved prices lower in the NY session. The price continued developing well below the moving averages. The price grew and snapped the 50 and 200-EMAs in the 1 hour chart in yearly trades. After testing the level the pair bounced downwards and broke the 100-EMA. All moving averages pointed lower. The resistance is at 1.0600, the support comes in at 1.0550.

MACD indicator is at the centerline. If the histogram returns into the negative territory that will indicate sellers’ growing strength. RSI remained within neutral readings.

Trading recommendations

Technical indicators kept giving bearish signals. We believe that bears may remain in the driver's seat in the short-term and may drive pair lower towards 1.0500.