Key Highlights
- EUR/USD extended its decline below the key 1.1700 support region.
- A crucial resistance seems to be forming near 1.1740 on the 4-hours chart.
- GBP/USD declined below the 1.2820 and 1.2750 support levels.
- Gold price is facing an increase in selling pressure below the $1,880 resistance.
EUR/USD Technical Analysis
This past week, the Euro failed to stay above the 1.1720 and 1.1700 support levels against the US Dollar. EUR/USD extended its decline and traded close to the 1.1600 level.
Looking at the 4-hours chart, the pair seems to be trading in the red zone below the 1.1650 level. It is now trading well below the 1.1700 pivot level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
If there is an upside correction, an initial resistance for the bulls is near the 1.1680 level. The main resistance is now forming near the 1.1740 region (the recent breakdown zone).
The 50% Fib retracement level of the key decline from the 1.1871 high to 1.1612 low is also near 1.1740. Therefore, EUR/USD is likely to face a strong selling interest as long as it is below 1.1740.
On the downside, the 1.1600 level is a decent support. If there is a downside break below 1.1600, the pair is likely to accelerate lower towards the 1.1540 level or even 1.1520 in the coming sessions.
Overall, EUR/USD is likely to face sellers if it starts an upside correction towards 1.1700 and 1.1740. Looking at GBP/USD, the pair seems to be facing a major hurdle near 1.2800 and 1.2840, and it could extend its decline below 1.2700.
Upcoming Economic Releases
- Dallas Fed Manufacturing Business Index for Sep 2020 – Forecast 9, versus 8 previous.
