Key Highlights
- EUR/USD found support near 1.1750 and recovered above 1.1820.
- A major bearish trend line is forming with resistance near 1.1850 on the 4-hours chart.
- GBP/USD is facing a strong resistance near the 1.3000 region.
- USD/JPY extended its decline below the 104.50 support.
EUR/USD Technical Analysis
This past week, the Euro failed to clear the 1.1900 resistance and declined against the US Dollar. EUR/USD retested the 1.1750 support level and it is currently trading near a key inflection zone.
Looking at the 4-hours chart, the pair traded as low as 1.1737 before starting a fresh increase. There was a break above the 1.1780 and 1.1800 resistance levels.
The pair surpassed the 50% Fib retracement level of the downward move from the 1.1900 swing high to 1.1737 low. The pair even spiked above the 1.1850 resistance, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
However, the pair seems to be facing a strong resistance near 1.1860-1.1880. There is also a major bearish trend line forming with resistance near 1.1850 on the same chart.
If there is a clear break and close above the trend line, EUR/USD could recover further above 1.1900. The next resistance could be 1.1940 or the 1.236 Fib extension level of the downward move from the 1.1900 swing high to 1.1737 low.
Conversely, the pair could fail to settle above the 1.1880 resistance zone. In the stated case, the pair might start a fresh decline towards the 1.1780 and 1.1750 support levels.
Overall, EUR/USD is trading near a major infection zone at 1.1880. Looking at GBP/USD, the pair is still struggling to clear the 1.3000 resistance. On the other hand, crude oil price climbed higher sharply above $38.00 and $40.00. Besides, USD/JPY extended its decline below the 104.50 support and traded close to the 104.20 zone.
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