Key Highlights
- EUR/USD started a decent increase above the 1.1550 resistance.
- A key bearish trend line is forming with resistance at 1.1600 on the 4-hour chart.
- GBP/USD started a recovery wave above 1.3200.
- USD/JPY is correcting gains and might test 155.00.
EUR/USD Technical Analysis
The Euro formed a base and climbed above 1.1520 against the US Dollar. EUR/USD even cleared the 1.1550 resistance before the bears appeared.
Looking at the 4-hour chart, the pair climbed above the 50% Fib retracement level of the downward move from the 1.1656 swing high to the 1.1491 low. The pair settled above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
However, the bears are protecting gains above 1.1600. There is also a key bearish trend line forming with resistance at 1.1600. The first key hurdle sits at 1.1610 and the 76.4% Fib retracement level of the downward move from the 1.1656 swing high to the 1.1491 low.
The next area of interest for the bulls could be 1.1650. Any more gains could set the pace for a steady increase toward 1.1700.
On the downside, there is key support at 1.1575. The next support is 1.1550, below which the pair could start a steady decline to 1.1500.
Looking at GBP/USD, the pair remains in a positive zone, but it must surpass 1.3250 to continue higher in the near term.
Upcoming Key Economic Events:
- ECB’s Nagel speech.
- Fed’s Chair Powell speech.
