Key Highlights
- EUR/USD started a recovery wave and climbed to test 1.1450.
- A rising channel or a possible bearish pennant is forming with resistance at 1.1500 on the 4-hour chart.
- GBP/USD recovered and tested the 1.3450 resistance.
- WTI Crude Oil prices struggled to stay above $75.00 and trimmed gains.
EUR/USD Technical Analysis
The Euro recovered some losses and climbed above 1.1420 against the US Dollar. However, EUR/USD seems to be facing hurdles near 1.1475 and 1.1500.
Looking at the 4-hour chart, the pair failed to clear the 50% Fibonacci retracement level of the downward move from the 1.1622 swing high to the 1.1324 low. It also struggled to settle above the 100 simple moving average (red, 4-hour) and remained well below the 200 simple moving average (green, 4-hour).
If there is a fresh decline, the pair might find support near 1.1380. The first major support could be near 1.1350. A downside break and close below 1.1350 might send the pair toward 1.1325. Any more losses could open the doors for a test of 1.1280.
On the upside, the bears might remain active near 1.1475. The next major resistance might be 1.1500. There is also a rising channel or a possible bearish pennant forming with resistance at 1.1500.
A close above the channel resistance could decrease selling pressure. In the stated case, the bulls could aim for a move to 1.1580.
Looking at GBP/USD, the pair recovered some losses, tested the 1.3450 resistance, and now shows some signs of consolidation.
Upcoming Key Economic Events:
- Fed’s Waller speech.
- ECB’s Schnabel speech.
- Monthly Budget Statement (Jun).
