The dollar strengthened on the back of renewed speculation that the Fed will act as soon as this month and due to the ECB’s decision to keep the rate unchanged.
The pair traded flat on Monday. The price was able to recover in the Asian session. However, the EUR/USD pair erased all its previous gains at the start of the European session. The price got under selling pressure and was trending towards 1.1200 during the European hours. The euro touched the 50-EMA in the 4 hours chart. The 50-EMA acts as a support for the price. The 50, 100 and 200 EMAs are pointing higher in the same chart. The resistance is seen at 1.1270, the support stands at 1.1200.
MACD is in the positive area. MACD decreased which indicates the buyers’ positions weakening. RSI is neutral, its signal line is approaching the oversold area.
If the pressure persists the EUR/USD pair can fall below 1.1200. In this potential scenario, sellers will push the price to 1.1130. On the other hand, the EUR/USD can recover up to the 1.1300 region.Publication source