Key Highlights
- EUR/USD started a recovery wave and tested the 1.1475 resistance.
- A rising channel is forming with support at 1.1395 on the 4-hour chart.
- GBP/USD started a recovery wave and climbed above 1.3300.
- USD/JPY found support near 160.60 and started a fresh increase.
EUR/USD Technical Analysis
The Euro found support near 1.1325 against the US Dollar. EUR/USD started a recovery wave above 1.1350 but faced many hurdles.
Looking at the 4-hour chart, the pair was able to surpass the 38.2% Fibonacci retracement level of the downward move from the 1.1672 swing high to the 1.1324 low. However, the bears remained active near the 1.1675 resistance and the 100 simple moving average (red, 4-hour).
The pair also faced rejection near the 50% Fib retracement level and started a fresh pullback. If there is another decline, the pair might find support near 1.1400.
Besides, there is a rising channel forming with support at 1.1395. The first major support could be near 1.1365. A downside break and close below 1.1365 might send the pair toward 1.1320. Any more losses could open the doors for a test of 1.1250.
On the upside, the bears might remain active near 1.1475. The next major resistance might be 1.1500. A close above 1.1500 could open the doors for a larger increase. In the stated case, the bulls could aim for a move to the 200 simple moving average (green, 4-hour) at 1.1540.
Looking at GBP/USD, the bulls attempted a recovery wave above 1.3300, but they could struggle near the 1.3385 resistance.
Upcoming Key Economic Events:
- Euro Zone Retail Sales for May 2026 (YoY) – Forecast +1.5%, versus +1.0% previous.
- Euro Zone Retail Sales for May 2026 (MoM) – Forecast +0.2%, versus -0.4% previous.
- US ISM Services Index for June 2026 – Forecast 54.2, versus 54.5 previous.
