Key Highlights
- EUR/USD started a fresh decline from the 1.0945 resistance.
- It traded below a rising channel with support at 1.0880 on the 4-hour chart.
- Gold started a downside correction below the $2,700 level.
- Bitcoin rallied to a new record high above $80,000 and might continue to rise.
EUR/USD Technical Analysis
The Euro started a fresh decline after it failed to surpass 1.0950 against the US Dollar. EUR/USD traded below the 1.0850 support to enter a bearish zone.
Looking at the 4-hour chart, the pair traded below a rising channel with support at 1.0880. It settled below the 1.0800 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
A low was formed at 1.0686 and the pair is now consolidating losses. It is trading near the 23.6% Fib retracement level of the recent decline from the 1.0825 swing high to the 1.0686 low.
On the downside, immediate support sits near the 1.0685 level. The next key support sits near the 1.0650 level. Any more losses could send the pair toward the 1.0620 level.
On the upside, the pair could face resistance near the 1.0755 level. The first key resistance is near the 1.0775 level or the 61.8% Fib retracement level of the recent decline from the 1.0825 swing high to the 1.0686 low.
A close above the 1.0775 level could set the tone for another increase. The next major resistance could be 1.0800, above which the price could accelerate higher toward the 1.0820 resistance.
Looking at Bitcoin, the bulls remain in action and they might even aim for a move toward the $85,000 level in the near term.
Upcoming Economic Events:
- China’s M2 Money Supply (YoY) (Oct) – Forecast +1.2%, versus +6.8% previous.
