Key Highlights
- USD/JPY started a downside correction and traded below 147.20.
- A connecting bullish trend line is forming with support at 144.50 on the 4-hour chart.
- EUR/USD could aim for a recovery if it clears the 1.1280 resistance.
- Gold prices dipped further and traded below $3,200.
EUR/USD Technical Analysis
The US Dollar failed to continue higher above 148.65 and corrected gains against the Japanese Yen. USD/JPY traded below the 148.00 and 147.50 levels.
Looking at the 4-hour chart, the pair traded below 147.20 support and tested the 50% Fib retracement level of the upward move from the 142.34 swing low to the 148.65 high. However, the pair remains well above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
On the downside, immediate support sits near the 144.75 level and the 200 simple moving average (green, 4-hour). The next key support sits near 144.50. There is also a connecting bullish trend line forming with support at 144.50 on the same chart.
Any more losses could send the pair toward the 143.20 level. On the upside, the pair could face resistance near the 147.00 level. The next key resistance sits near the 147.50 level.
The first major resistance sits at 148.00. A close above the 148.00 level could set the tone for another increase. In the stated case, the pair could even clear the 148.65 resistance. The next major stop for the bulls could be near the 150.00 resistance.
Looking at EUR/USD, the pair started a consolidation phase and faces hurdles near the 1.1280 and 1.1320 levels.
Upcoming Economic Events:
- US Housing Starts for April 2025 (MoM) – Forecast 1.370M, versus 1.324M previous.
- US Building Permits for April 2025 (MoM) – Forecast 1.450M, versus 1.467M previous.
- Michigan Consumer Sentiment Index for May 2025 (Prelim) – Forecast 53.4, versus 52.2 previous.
