EUR/USD Could Struggle To Settle Above 1.2000

Key Highlights

• EUR/USD started an upside correction from the 1.1835 low.
• It is now facing a strong resistance near 1.2000 and 1.2025.

EUR/USD Technical Analysis

Looking at the 4-hours chart, the pair climbed above the 1.1920 resistance zone. There was also a break above a key bearish trend line at 1.1930 on the same chart. It opened the doors for a move above the 1.1950 resistance.

However, the pair faced resistance near 1.1990. It seems like the 50% Fib retracement level of the downward move from the 1.2113 high to 1.1835 low acted as a resistance.

The pair is clearly facing a strong resistance near 1.2000 and 1.2025. The 100 simple moving average (red, 4-hours) is also near the 1.2040 level to act as a hurdle. A clear break above the 1.2025 and 1.2050 levels could open the doors for a steady increase.

Conversely, the pair could start a fresh decline below the 1.1900 support zone. The next major support is near 1.1840, below which there is a risk of a drop towards the 1.1800 level.