Key Highlights
- EUR/USD started a recovery wave from the 1.1410 level.
- It traded above a key bearish trend line with resistance at 1.1510 on the 4-hour chart.
- GBP/USD failed to clear the 1.3450 resistance zone and trimmed gains.
- Gold prices declined heavily below $5,000 and $4,800.
EUR/USD Technical Analysis
The Euro found support near 1.1410 and started a recovery wave against the US Dollar. EUR/USD climbed above 1.1500 before it faced resistance.
Looking at the 4-hour chart, the pair traded above a key bearish trend line with resistance at 1.1510. The bulls pushed the pair above the 50% Fib retracement level of the downward move from the 1.1667 swing high to the 1.1410 low.
However, the pair faced resistance near 1.1605 and the 100 simple moving average (red, 4-hour). The 76.4% Fib retracement level of the downward move from the 1.1667 swing high to the 1.1410 low also acted as a resistance.
On the upside, the pair is now facing sellers near 1.1600. The first major resistance sits at 1.1620. A close above 1.1620 could open the doors for gains above 1.1640. In the stated case, the bulls could aim for a move to 1.1655.
If there is no upside break above 1.1600, the pair might start a fresh decline. Immediate support is seen near 1.1510. The first key support sits at 1.1450. A close below 1.1450 might call for heavy losses. In the stated case, it could even revisit 1.1410 in the coming days.
Looking at Gold, the price failed to stay above $4,800 and started a sharp decline toward $4,400. The main support sits at $4,200.
Upcoming Key Economic Events:
- ECB’s Cipollone speech.
- ECB’s Lane speech.
