Key Highlights
- EUR/USD started a fresh decline below 1.1700 and 1.1650.
- A major bearish trend line is forming with resistance at 1.1665 on the 4-hour chart.
- GBP/USD extended losses and traded below 1.3400.
- Gold started another increase and rallied above $4,650.
EUR/USD Technical Analysis
The Euro failed to clear 1.1800 and started a fresh decline against the US Dollar. EUR/USD traded below 1.1720 and 1.1700 to enter a bearish zone.
Looking at the 4-hour chart, the pair declined below 1.1650 and even spiked below 1.1660. A low was formed at 1.1577, and the pair is now trading well below the 200 simple moving average (green, 4-hour) and the 100 simple moving average (red, 4-hour).
Immediate resistance sits near 1.1630. It is close to the 23.6% Fib retracement level of the downward move from the 1.1807 swing high to the 1.1577 low.
The first key hurdle is seen near 1.1665. There is also a major bearish trend line forming with resistance at 1.1665. A close above 1.1665 could open the doors for a move toward 1.1700. Any more gains could set the pace for a steady increase toward 1.1750.
If there is no move above 1.1665, there could be a bearish reaction. On the downside, immediate support is near the 1.1600 level. The first major area for the bulls might be near 1.1575.
A close below 1.1575 might spark heavy bearish moves. The next support could be 1.1520, below which the bears might aim for a move toward 1.1450.
Looking at Gold, the price started another increase, and the bulls were able to pump the price to a new all-time high above $4,660.
Upcoming Key Economic Events:
- Euro Zone CPI for Dec 2025 (YoY, Preliminary) – Forecast +2%, versus +2% previous.
- Euro Zone CPI for Dec 2025 (MoM, Preliminary) – Forecast +0.2%, versus +0.2% previous.
