Key Highlights
- EUR/USD corrected some gains from the 1.1500 resistance zone.
- A connecting bullish trend line is forming with support at 1.1330 on the 4-hour chart.
- GBP/USD tested the 1.3600 resistance and corrected some gains.
- USD/JPY recovered losses and climbed above the 144.20 resistance.
EUR/USD Technical Analysis
The Euro remained well-bid above 1.1350 against the US Dollar. EUR/USD climbed above 1.1420, tested 1.1500, and recently started a short-term downside correction.
Looking at the 4-hour chart, the pair settled above the 1.1320 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). On the downside, immediate support is near the 1.1350 level. It is near the 50% Fib retracement level of the upward move from the 1.1210 swing low to the 1.1494 high.
The next key support sits near 1.1330. There is also a connecting bullish trend line forming with support at 1.1330 on the same chart. Any more losses could send the pair toward the 1.1250 pivot level in the near term. The main support could be near 1.1200.
On the upside, the pair could face resistance near the 1.1465 level. The next key resistance sits near the 1.1480 level. The first major resistance sits at 1.1500. A close above the 1.1500 level could set the pace for another increase.
In the stated case, the pair could even clear the 1.1620 resistance. The next major stop for the bulls could be near the 1.1680 resistance.
Looking at GBP/USD, the pair started another increase, but the bulls seem to be facing hurdles near the 1.3600 level.
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