Key Highlights
- EUR/USD trimmed gains and retested the 1.0780 support.
- It traded below a bullish trend line with support near 1.0800 on the 4-hour chart.
- GBP/USD is also moving lower below the 1.2650 support.
- USD/JPY is eyeing a fresh increase toward the 147.40 level.
EUR/USD Technical Analysis
The Euro attempted an upside correction above the 1.0820 resistance against the US Dollar. EUR/USD climbed above 1.0880 but struggled to surpass 1.0950.
Looking at the 4-hour chart, the pair peaked near 1.0945 and started a fresh decline. It trimmed all gains and traded below the 1.0850 level. Besides, it traded below a bullish trend line with support near 1.0800.
The pair is now retesting the 1.0780 support zone, and trading below the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).
On the upside, an initial resistance is near the 1.0810 level. The first major resistance is near the 1.0840 level. A close above 1.0840 could start a decent increase. In the stated case, the pair could rise toward the 1.0950 level. Any more gains could send the pair toward the 1.1000 level.
If not, the pair might start a fresh decline below the 1.0780 support. The next key support is seen near the 1.0750 level.
If there is a move below 1.0750, the pair could dive toward 1.0710. Any more losses might send the pair toward the 1.0650 level.
Looking at GBP/USD, the pair declined below the 1.2650 level and there could be more downsides in the near term.
Economic Releases
- ECB’s President Lagarde speech.
