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EUR/USD Aims Recovery But Upsides Might Be Limited

Key Highlights

  • EUR/USD is attempting a recovery wave above the 1.0550 resistance.
  • A connecting bullish trend line is forming with support at 1.0520 on the 4-hour chart.
  • Gold prices are correcting losses and trading near $1,850.
  • GBP/USD started a decent increase above the 1.2150 resistance.

EUR/USD Technical Analysis

The Euro started a major decline below the 1.0650 level against the US Dollar. EUR/USD traded below the 1.0550 level to enter a bearish zone.

Looking at the 4-hour chart, the pair settled below the 1.0550 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

It even tested the 1.0450 zone. A low was formed near 1.0448 and the pair recently started a recovery wave. There was a move above the 1.0500 and 1.0550 resistance levels. It even tested the 1.0600 resistance and the 100 simple moving average (red, 4 hours).

However, the pair is now struggling to clear the 1.0600 resistance. The main resistance sits at 1.0650 and the 200 simple moving average (green, 4 hours).

A close above 1.0650 could start a steady increase. In the stated case, EUR/USD might rise and recover toward the 1.0760 resistance zone. If not, the pair could start another decline from 1.0600.

Immediate support is near the 1.0550 level. The next key support is seen near the 1.0520 level and the trend line, below which it could test 1.0500. Any more losses might send the pair toward the 1.0450 level.

Looking at gold, the price found support near the $1,810 zone and is currently attempting a recovery wave toward the $1,865 level.

Economic Releases

  • Euro Zone Sentix Investor Confidence for Oct 2023 – Forecast -20.0, versus -21.5 previous.
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