Key Highlights
- EUR/USD failed to continue higher above 1.0450 and trimmed gains.
- A connecting bearish trend line is forming with resistance at 1.0385 on the 4-hour chart.
- GBP/USD is consolidating near the 1.2380 zone.
- USD/JPY dipped toward the 151.20 level and started a consolidation phase.
EUR/USD Technical Analysis
The Euro started a fresh increase above 1.0350 against the US Dollar. However, EUR/USD struggled near 1.0450 and recently trimmed gains.
Looking at the 4-hour chart, the pair settled below the 1.0380 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The bears pushed the pair below the 50% Fib retracement level of the upward move from the 1.0210 swing low to the 1.0442 high.
On the downside, immediate support sits near the 1.0365 level. It is near the 76.4% Fib retracement level of the upward move from the 1.0210 swing low to the 1.0442 high.
The next key support sits near the 1.0250 level. Any more losses could send the pair toward the 1.0210 level. On the upside, the pair seems to be facing hurdles near the 1.0330 level.
The next major resistance is near the 1.0360 level. The main resistance is now forming near the 1.0400 zone and the 100 simple moving average (red, 4-hour). A close above the 1.0400 level could set the tone for another increase. In the stated case, the pair could even clear the 1.0465 resistance.
Looking at GBP/USD, the pair was able to recover above the 1.2350 resistance, but the bears are still active below 1.2450.
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