Key Highlights
- EUR/USD is consolidating above the 1.1220 support zone.
- It cleared a major bearish trend line with resistance near 1.1285 on the 4-hours chart.
- GBP/USD might start an upside correction above the 1.3300 resistance.
- Crude oil price seems to be forming a base for a fresh increase above $73.50.
EUR/USD Technical Analysis
The Euro found support near the 1.1200 and 1.1220 support levels against the US Dollar. EUR/USD is now attempting a recovery wave above the 1.1300 resistance zone.
Looking at the 4-hours chart, the pair is attempting a decent upward move above the 1.1300 resistance. The pair even climbed above the 23.6% Fib retracement level of the downward move from the 1.1608 swing high to 1.1186 low.
There was also a break above a major bearish trend line with resistance near 1.1285 on the same chart. The pair even climbed above the 1.1320 level and the 100 simple moving average (red, 4-hours). On the upside, the bulls are now facing resistance near the 1.1380 level.
The next key resistance is near the 50% Fib retracement level of the downward move from the 1.1608 swing high to 1.1186 low. The main resistance is near the 1.1400 level and the 200 simple moving average (green, 4-hours).
A clear break above the 1.1380 and 1.1400 resistance levels could open the doors for a steady upward move. If not, there could be a fresh decline below the 1.1280 support. The next major support is near the 1.1220 level, below which the pair could decline heavily.
Looking at GBP/USD, the pair spiked below the key 1.3200 support zone, and it is now attempting an upside correction.
Economic Releases
- German Wholesale Price Index for Nov 2021 (MoM) – Forecast +1.0%, versus +1.6% previous.
