Wed, Feb 01, 2023 @ 20:06 GMT
HomeContributorsTechnical AnalysisEUR/USD Turns Green, Why Dollar Could Dip Further

EUR/USD Turns Green, Why Dollar Could Dip Further

Key Highlights

  • EUR/USD is showing positive signs above the 1.0500 resistance.
  • It broke a few hurdles near 1.0380 and 1.0480 on the 4-hours chart.
  • GBP/USD extended gains and traded above the 1.2200 resistance.
  • Gold price could rise further towards the $1,825 resistance zone.

EUR/USD Technical Analysis

The Euro started a fresh increase from the 1.0250 support zone against the US Dollar. EUR/USD cleared a major hurdle near 1.0380 to move into a positive zone.

Looking at the 4-hours chart, the pair settled above the 1.0450 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The bulls even pushed the pair above the 1.0500 resistance and the last swing high at 1.0497. The pair is now showing positive signs above the 1.0500 level. On the upside, the pair is facing resistance near the 1.0580.

The next major resistance may perhaps be near 1.0620. A clear move above the 1.0620 and then 1.0650 might start another decent increase.

In the stated case, EUR/USD may perhaps test 1.0700. Any more gains could set the pace for a move towards the 1.0800 resistance zone.

An initial support is near the 1.0480 level. The next major support is near the 1.0440 zone. Any more losses might send the pair towards the 1.0350 support zone.

Looking at GBP/USD, the pair accelerated higher and surpassed the 1.2200 level. It seems like the bulls could aim a move towards the 1.2400 level.

Economic Releases

  • Germany’s Services PMI for Nov 2022 – Forecast 46.4, versus 46.4 previous.
  • Euro Zone Services PMI for Nov 2022 – Forecast 48.6, versus 48.6 previous.
  • UK Services PMI for Nov 2022 – Forecast 48.8, versus 48.8 previous.
  • US Services PMI for Nov 2022 – Forecast 46.1, versus 46.1 previous.
  • US ISM Services PMI for Nov 2022 – Forecast 55.6, versus 54.4 previous.
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