Key Highlights
- EUR/USD declined and retested the 1.0880 support zone.
- It traded below a key bullish trend line at 1.0900 on the 4-hour chart.
- GBP/USD is attempting a fresh increase above the 1.2650 resistance.
- USD/JPY climbed higher above the 143.20 resistance zone.
EUR/USD Technical Analysis
The Euro started a fresh decline from the 1.1140 zone against the US Dollar. EUR/USD declined below the 1.0950 support to enter a short-term bearish zone.
Looking at the 4-hour chart, the pair traded below a key bullish trend line at 1.0900. Finally, the pair tested the 1.0880 support zone. A low was formed near 1.0876 and the pair is now attempting a fresh increase.
There was a move above the 1.0920 level. The pair spiked above the 100 simple moving average (red, 4 hours) and settled above the 200 simple moving average (green, 4 hours).
On the upside, immediate resistance is near the 1.0980 level. The next key resistance is near the 1.1000 level or the 50% Fib retracement level of the downward move from the 1.1139 swing high to the 1.0876 low.
A close above the 1.1000 zone could open the doors for more upsides. The next stop for the bulls might be 1.1065. If there is a fresh decline, the pair might test the 1.0920 support.
The next major support sits at 1.0880. A downside break below the 1.0880 zone could spark a sustained decline. The next major support is 1.0850, below which the pair might decline and test 1.0820. Any more losses might send the pair toward the 1.0750 zone.
Looking at GBP/USD, the pair is attempting a fresh increase and the bulls could aim for a move above the 1.2800 level.
Economic Releases
- Euro Zone Consumer Confidence for Dec 2023 – Forecast -15.1, versus -15.1 previous.
- Euro Zone Services Sentiment for Dec 2023 – Forecast 4.9, versus 4.9 previous.
