The euro strengthened on the back of the U.S weak statistics

August 15, 2016

The euro strengthened on the back of the U.S weak statistics. Retail Sales and PPI index came in worse than expected. Now traders diminished their expectations for another rate increase in the current year.

Current situation

The dollar partly weakened on the U.S data, but soon reversed and pushed the EUR/USD down. The price returned to the levels where it was before the Retail Sales and PPI releases and ended the day bearish. The resistance is seen at 1.1200, the support stands at 1.1130.

MACD remained in the positive area. MACD decreased which indicates the buyers’ positions weakening. RSI bounced from the overbought area and is heading to the south.

The price is hovering above the 50, 100 and 200 EMAs which are still forming a narrow channel in the 4 hours chart. The moving averages are pointing upwards.

Trading recommendations

Sellers might force the pair to resume its downward trajectory. The price may drift below 1.1130 to test the 1.1080 support area.

Publication source
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