Key Highlights
- EUR/USD declined heavily and opened lower below 1.0320.
- It traded below a key bullish trend line with support at 1.0370 on the 4-hour chart.
- Bitcoin and Ethereum declined heavily and the greenback rallied.
- GBP/USD also declined and traded below the 1.2300 level.
EUR/USD Technical Analysis
The Euro started another decline from the 1.0530 zone against the US Dollar. EUR/USD traded below the 1.0450 and 1.0420 support levels to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below the 1.0350 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The bears seem to be in control and might aim for more losses.
On the downside, immediate support sits near the 1.0210 level. The next key support sits near the 1.0200 level. Any more losses could send the pair toward the 1.1165 level.
On the upside, the pair seems to be facing hurdles near the 1.0270 level. The next major resistance is near the 1.0300 level. A close above the 1.0300 level could set the tone for another increase. In the stated case, the pair could even clear the 1.0350 resistance and the 100 simple moving average (red, 4-hour).
Looking at Bitcoin, there was a sharp decline and the price traded below the $95,000 support zone.
Upcoming Economic Events:
- Euro Zone Manufacturing PMI for Jan 2025 – Forecast 46.1, versus 46.1 previous.
- UK Manufacturing PMI for Jan 2025 – Forecast 48.2, versus 48.2 previous.
- US ISM Manufacturing PMI for Jan 2025 – Forecast 49.5, versus 49.3 previous.