Key Highlights
- EUR/USD started a fresh decline from the 1.1260 resistance.
- A key bearish trend line is forming with resistance at 1.1225 on the 4-hour chart.
- GBP/USD is consolidating below the 1.3350 resistance zone.
- Gold prices dipped further and traded below $3,180.
EUR/USD Technical Analysis
The Euro attempted to recover above 1.1220 against the US Dollar. However, EUR/USD struggled near 1.1265 and reacted to the downside.
Looking at the 4-hour chart, the pair failed to clear the 61.8% Fib retracement level of the downward move from the 1.1380 swing high to the 1.1065 low. It settled below the 1.1250 level, 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 1.1120 level. The next key support sits near 1.1065. Any more losses could send the pair toward the 1.1020 level.
On the upside, the pair could face resistance near the 1.1225 level. There is also a key bearish trend line forming with resistance at 1.1225 on the same chart. The next key resistance sits near the 1.1300 level. The first major resistance sits at 1.1320.
A close above the 1.1320 level could set the pace for another increase. In the stated case, the pair could even clear the 1.1380 resistance. The next major stop for the bulls could be near the 1.1450 resistance.
Looking at GBP/USD, the pair started a consolidation phase and faces hurdles near the 1.3350 and 1.3380 levels.
Upcoming Economic Events:
- Fed’s Bostic speech.
- Fed’s Jefferson speech.
- Fed’s Williams speech.
