Aayush Jindal
Key Highlights
- EUR/USD started a consolidation phase above the 1.1160 support.
- A major bearish trend line is forming with resistance at 1.1220 on the 4-hour chart.
- GBP/USD might attempt to recover if it clears the 1.3280 resistance.
- Gold prices found support near $4,080 and started a recovery wave.
EUR/USD Technical Analysis
The Euro remained in a bearish zone below 1.1280 against the US Dollar. However, the bulls are currently protecting a downside break below 1.1160.
Looking at the 4-hour chart, the pair recovered some points and climbed toward the 50% Fib retracement level of the downward move from the 1.1380 swing high to the 1.1160 low. However, the pair failed to recover above 1.1280.
It is also well below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). Besides, there is a major bearish trend line forming with resistance at 1.1220.
The first major resistance might be 1.1340 and the 100 simple moving average (red, 4-hour). A close above the 1.1340 pivot level could initiate a steady increase. If the bears remain active below 1.1220 or 1.1280, there might be a fresh decline.
Immediate support could be 1.1160. The first major support might be 1.1120. A close below 1.1120 might accelerate the decline. In the stated case, the pair might drop to 1.1040.
Looking at GBP/USD, the bears seem to be losing steam, and there could be a recovery wave above the 1.3280 resistance.
Upcoming Key Economic Events:
- Fed's Hammack speech.
