Key Highlights
- EUR/USD gained pace for a move above the 1.0400 resistance.
- A key bullish trend line is forming with support near 1.0280 on the 4-hours chart.
- GBP/USD remains elevated above the 1.1800 resistance zone.
- Oil price declined heavily below the $83.20 support zone.
EUR/USD Technical Analysis
The Euro started a steady increase above the 1.0150 and 1.0250 resistance levels against the US Dollar. EUR/USD even broke the 1.0320 resistance zone.
Looking at the 4-hours chart, the pair settled above the 1.0300 level, the 100 simple moving average (red, 4-hours) plus the 200 simple moving average (green, 4-hours).
It traded as high as 1.0481 and recently started a downside correction. It traded below the 1.0400 support level. There was a move below the 23.6% Fib retracement level of the upward move from the 0.9935 swing low to 1.0481 high.
An initial support is near the 1.0280 level. There is also a key bullish trend line forming with support near 1.0280 on the same chart.
The next major support is near the 1.0200 zone. It is near the 50% Fib retracement level of the upward move from the 0.9935 swing low to 1.0481 high. The main support sits at 1.0100. A close below the 1.0100 level might start another strong decline.
In the stated case, EUR/USD could decline towards the 1.0000 support. On the upside, an immediate resistance is near 1.0385 level. The next major resistance may perhaps be near 1.0400. Any more gains could set the pace for a move towards the 1.0480 resistance zone.
Looking at oil price, there was a major decline below the $84.00 and $83.20 levels before the bulls took a stand near the $78.80 level.
Economic Releases
- Chicago Fed National Activity Index for Oct 2022 – Forecast 0.10, versus 0.10 previous.
