- EUR/USD is trading just above flat after struggling after the NFP data.
- There is also a support trendline that is working very well at the moment.
EUR/USD 4-hour chart
EUR/USD has had a tough week as the greenback made a small comeback. The lack of progress in fiscal talks in the US and an ECB member referencing the strong EUR was enough to send the pair lower by 0.43%. Next week the market braces itself for the ECB rate and monetary policy decisions and there could be more talk that the EUR is overvalued. Elsewhere the new economic forecasts will be interesting, especially inflation and deflation in the EU was confirmed.
Looking at the chart, the price has now bounced back from the post non-farm payroll low. The pair briefly dipped below 1.18 and has now popped back 37 pips higher. The main support on the chart came from the black upward sloping trendline that connects the consolidation wave lows. Beyond that, the 2 main levels are the orange line at 1,1768 and the main consolidation low at 1.17.
The indicators are bearish at the moment as the MACD histogram is red and the Relative Strength Index is under the 50 area. The MACD signal lines have also moved below the mid-level but the two lines have now crossed higher after the recent move up.
Overall, the pair is still in an uptrend. Much will depend on the ECB meeting next Thursday but now the price is likely to remain in this consolidation zone.