Forex Trading

EUR/USD Could Restart Increase If It Clears This Resistance


Key Highlights

  • EUR/USD declined below 1.0920 and tested the 1.0845 zone.
  • A key bearish trend line is forming with resistance near 1.0900 on the 4-hour chart.
  • GBP/USD is eyeing a decent increase above the 1.2750 resistance.
  • Gold prices found support near $2,000 and started a fresh increase.

EUR/USD Technical Analysis

The Euro failed to clear the 1.1120 resistance and started a fresh decline against the US Dollar. EUR/USD dropped below the 1.0950 and 1.0920 levels to enter a bearish zone.

Looking at the 4-hour chart, the pair settled below the 1.0950 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours). Finally, the bulls appeared near the 1.0845 level.

A low was formed near 1.0844 and the pair is now attempting a fresh increase. There was a minor move above the 1.0880 level. The pair is now facing resistance near the 1.0900 level.

There is also a key bearish trend line forming with resistance near 1.0900 on the same chart. The next key resistance is near the 1.0940 zone. A close above the 1.0940 zone could open the doors for more upsides. The next stop for the bulls might be 1.0985.

If there is no move above 1.0900, the pair might continue to move down. Immediate support is seen near the 1.0865 level. The first major support is near the 1.0845 level.

The next major support sits near the 1.0800. A downside break below the 1.0800 zone could spark a sustained decline. The next major support is 1.0760 below which the pair might decline and test 1.0720.

Looking at GBP/USD, the pair is slowly moving higher and might gain bullish momentum if there is a clear move above the 1.2750 resistance.

Economic Releases

  • German Buba Monthly Report.



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