Sat, Oct 23, 2021 @ 17:18 GMT
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EUR/USD Could Struggle Near 1.1800, Dollar Consolidates

Key Highlights

  • EUR/USD started an upside correction from the 1.1680 region.
  • A major bearish trend line is forming with resistance near 1.1755 on the 4-hours chart.
  • GBP/USD is facing an uphill task near 1.3750 and 1.3800.
  • Gold price remains at a risk of more downsides below $1,740.

EUR/USD Technical Analysis

The Euro extended its decline below the 1.1700 zone against the US Dollar. EUR/USD traded as low as 1.1683 before it started an upside correction.

Looking at the 4-hours chart, the pair recovered above the 1.1720 resistance level. There was a break above the 50% Fib retracement level of the recent decline from the 1.1788 high to 1.1683 low.

However, the bears seem to be protecting the 1.1750 resistance zone. It is near the 61.8% Fib retracement level of the recent decline from the 1.1788 high to 1.1683 low. There is also a major bearish trend line forming with resistance near 1.1755 on the same chart.

The main resistance is forming near the 1.1800 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

A close above 1.1800 could start a steady increase. If not, there is a risk of more losses below 1.1700. An immediate support is near the 1.1680, below which the pair could dive towards 1.1620.

Looking at GBP/USD, the pair attempted a strong recovery from 1.3600, but it faced a major resistance near the 1.3750 region.

Economic Releases

  • US Durable Goods Orders for August 2021 – Forecast +0.6% versus -0.1% previous.
  • US Nondefense Capital Goods Orders ex Aircraft for August 2021 – Forecast +0.1% versus 0% previous.

 

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