Key Highlights
- EUR/USD started a downward move from the 1.1820 resistance zone.
- A key bearish trend line is forming with resistance at 1.1660 on the 4-hour chart.
- GBP/USD is showing bearish signs below the 1.3500 level.
- USD/JPY could aim for more gains above the 149.20 resistance.
EUR/USD Technical Analysis
The Euro failed to clear the 1.1820 resistance and declined against the US Dollar. EUR/USD traded below the 1.1780 and 1.1720 support levels.
Looking at the 4-hour chart, the pair settled below the 1.1720 zone and the 100 simple moving average (red, 4-hour). However, it managed to stay above the 200 simple moving average (green, 4-hour).
On the downside, immediate support is near the 1.1600 level and the 200 simple moving average (green, 4-hour). The next key support sits near 1.1575. Any more losses could send the pair toward the 1.1520 support zone.
On the upside, the pair could face resistance near the 1.1660 level. There is also a key bearish trend line forming with resistance at 1.1660 on the same chart. The next key resistance sits near the 1.1720 level. A close above the 1.1720 level could set the pace for another increase.
In the stated case, the pair could rise toward the 1.1780 resistance. The next major stop for the bulls could be near the 1.1820 resistance.
Looking at GBP/USD, the pair is struggling to start a fresh increase and might decline further below the 1.3400 level.
Upcoming Economic Events:
- Bank of Canada Business Outlook Survey.
