Sat, Oct 23, 2021 @ 00:54 GMT
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EUR/USD Resumes Decline, Dollar Gains Traction

Key Highlights

  • EUR/USD started a fresh decline from the 1.1900 resistance zone.
  • A major bearish trend line is forming with resistance near 1.1800 on the 4-hours chart.
  • GBP/USD also traded below the key 1.3800 support zone.
  • Gold price extended its decline below the $1,780 support zone.

EUR/USD Technical Analysis

The Euro failed to clear the 1.1900 resistance zone against the US Dollar. EUR/USD traded as high as 1.1909 before it started a fresh decline.

Looking at the 4-hours chart, the pair traded below a couple of important support near 1.1850 and 1.1820. There was also a break below two bullish trend lines at 1.1850 and 1.1815.

The pair traded below the 50% Fib retracement level of the key upward move from the 1.1663 swing low to 1.1909 high. It is now trading well below the 1.1800 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

An immediate resistance is near the 1.1720 level. If there is a close below the 76.4% Fib retracement level of the key upward move from the 1.1663 swing low to 1.1909 high, the pair might continue to move down.

The next major support could be 1.1680. Any more losses might push the pair towards the 1.1620 support zone in the near term.

On the upside, there is a major resistance forming near 1.1800. There is also a key bearish trend line forming with resistance near 1.1800 on the same chart.

Looking at GBP/USD, the pair faced an increase in selling pressure and there was a clear break below the main 1.3800 support zone.

Economic Releases

  • German Producer Price Index for August 2021 (YoY) – Forecast +9.2%, versus +10.4% previous.
  • German Producer Price Index for August 2021 (MoM) – Forecast +0.8%, versus +1.9% previous.

 

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