Fri, Feb 03, 2023 @ 16:36 GMT
HomeContributorsTechnical AnalysisEUR/USD Could Resume Upside, Oil Price Turns Red

EUR/USD Could Resume Upside, Oil Price Turns Red

Key Highlights

  • EUR/USD is showing positive signs above the 1.0280 support.
  • It traded above a major contracting triangle with resistance near 1.0315 on the 4-hours chart.
  • Crude oil price is accelerating losses below the $80 support.
  • Gold price is still holding gains above the $1,720 level.

EUR/USD Technical Analysis

The Euro started a downside correction from 1.0480 against the US Dollar. EUR/USD declined towards 1.0220, where it found support and started a fresh increase.

Looking at the 4-hours chart, the pair traded as low as 1.0222. The pair seems to be forming a base above the 1.0200 level, the 100 simple moving average (red, 4-hours) plus the 200 simple moving average (green, 4-hours).

There was a fresh increase above the 1.0280 and 1.0300 resistance levels. There was also a break above a major contracting triangle with resistance near 1.0315 on the same chart.

The pair is now trading above the 1.0350 level. On the upside, an immediate resistance is near 1.0435 level. The next major resistance may perhaps be near 1.0480. Any more gains could set the pace for a move towards the 1.0550 resistance zone.

An initial support is near the 1.0350 level. The next major support is near the 1.0320 zone, below which the pair might revisit the key 1.0220 support zone.

If the bulls fail to protect the 1.0220 support zone, there is a risk of a more downsides. In the stated case, EUR/USD may perhaps test the 1.0100 support. Any more losses might send the pair towards the 1.0000 support.

Looking at gold price, there is a decent support base forming above the $1,720 level and there could be more upsides in the coming sessions.

Economic Releases

  • Dallas Fed Manufacturing Business Index for Nov 2022 – Forecast -18.3, versus -19.4 previous.
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