Key Highlights
- EUR/USD started a recovery wave above the 1.0650 resistance.
- It broke a major bearish trend line with resistance at 1.0720 on the 4-hour chart.
- GBP/USD rallied and tested the 1.2620 resistance zone.
- Oil prices extended losses and traded below the $78.80 support.
EUR/USD Technical Analysis
The Euro found support near 1.0600 against the US Dollar. EUR/USD started a recovery wave and was able to clear the 1.0650 resistance.
Looking at the 4-hour chart, the pair broke a major bearish trend line with resistance at 1.0720. There was a decent increase above the 50% Fib retracement level of the downward move from the 1.0885 swing high to the 1.0601 low.
There was a close above the 100 simple moving average (red, 4-hour) and tested the 200 simple moving average (green, 4-hour). The pair even tested the 1.0820 resistance.
It seems like the pair is now struggling to clear the 76.4% Fib retracement level of the downward move from the 1.0885 swing high to the 1.0601 low. A clear move above the 1.0820 resistance might send it toward the 1.0880 level.
Immediate support is near the 1.0750 level and the 200 simple moving average (green, 4-hour). The next major support is at 1.0720.
If there is a downside break below the 1.0720 support, the pair might test 1.0685 and the 100 simple moving average (red, 4-hour). Any more losses might send the pair toward 1.0600.
Looking at Oil, the price extended losses and it seems like the bears could aim for a move toward the $76.20 level.
Economic Releases
- Germany’s Services PMI for April 2024 – Forecast 53.3, versus 53.3 previous.
- Euro Zone Services PMI for April 2024 – Forecast 52.9, versus 52.9 previous.
