Key Highlights
- EUR/USD started a downside correction from the 1.1800 zone.
- A key bullish trend line is forming with support at 1.1700 on the 4-hour chart.
- GBP/USD is currently consolidating gains above 1.3320.
- Gold could continue to gain bullish momentum if it settles above $4,380.
EUR/USD Technical Analysis
The Euro failed to clear the 1.1800 barrier against the US Dollar. EUR/USD corrected some gains and traded below 1.1750.
Looking at the 4-hour chart, the pair settled above the 200 simple moving average (green, 4-hour) and the 100 simple moving average (red, 4-hour). A high was formed at 1.1804 before there was a pullback. The pair dipped and tested the 50% Fib retracement level of the upward move from the 1.1615 swing low to the 1.1804 high.
On the downside, there is key support at 1.1700. There is also a bullish trend line forming with support at 1.1700. A downside break below the trend line might spark bearish moves.
The first major support is 1.1655 and the 76.4% Fib retracement level of the upward move from the 1.1615 swing low to the 1.1804 high. The next support could be 1.1615 and the 200 simple moving average (green, 4-hour), below which the bears might aim for a move toward 1.1550.
Immediate resistance sits near 1.1750. The first key hurdle is seen near 1.1760. A close above 1.1760 could open the doors for a move toward 1.1800. Any more gains could set the pace for a steady increase toward 1.1850.
Looking at Gold, the bulls remain in action and might soon aim for a move above the $4,400 level in the near term.
Upcoming Key Economic Events:
- Chicago Fed National Activity Index for Sep 2025 – Forecast -0.10, versus -0.12 previous.
