Tue, May 18, 2021 @ 11:36 GMT
Home Contributors Technical Analysis EUR/USD Eyes Upside Break Above 1.2000

EUR/USD Eyes Upside Break Above 1.2000

Key Highlights

  • EUR/USD gained bullish momentum above the 1.1920 resistance.
  • A daily close above 1.2000 might start a steady increase.
  • GBP/USD could attempt an upside break above the key 1.3880 resistance.
  • USD/JPY must stay above 108.40 to avoid more losses.

EUR/USD Technical Analysis

In the past few days, the Euro saw a steady increase above 1.1880 and 1.1900 against the US Dollar. EUR/USD even broke the key 1.1920 resistance to move into a positive zone.

Looking at the 4-hours chart, the pair cleared a couple of bullish continuation patters near 1.1770 and 1.1925. It opened the doors for a decent increase above 1.1950. The pair even settled above the 1.1950 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

It is now consolidating gains near the 1.1990 and 1.2000 resistance levels. A successful daily close above the 1.2000 level could open the doors for a steady increase.

The next major resistance is near 1.2050, above which EUR/USD could test 1.2120. If there is a downside correction, the pair may possibly find bids near the 1.1935 level. The next major support is near the 1.1900 level or the 200 simple moving average (green, 4-hours).

Any more losses might lead the pair towards the key 1.1850 support zone and the 100 simple moving average (red, 4-hours).

Overall, EUR/USD must settle above 1.2000 for more upsides. Similarly, GBP/USD must clear 1.3880 for a strong increase in the coming sessions.

Economic Releases

  • Euro Zone Current Account for Feb 2021 (s.a.) – Forecast €28.5B versus €30.0B previous.

 

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