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EUR/USD Selloff Gathers Steam—Can Bulls Find A Lifeline?

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Aayush Jindal

Key Highlights

  • EUR/USD failed to stay above 1.1500 and extended losses.
  • A bearish trend line is forming with resistance at 1.1425 on the 4-hour chart.
  • GBP/USD declined heavily and traded below 1.3320.
  • USD/JPY struggled to climb above 159.00 and corrected some gains.

EUR/USD Technical Analysis

The Euro struggled to stay in a positive zone against the US Dollar. EUR/USD started a fresh decline and traded below the 1.1465 support.

Looking at the 4-hour chart, the pair settled below 1.1450, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The bears even pushed the pair below 1.1380. A low was formed at 1.1359, and the pair started a consolidation phase.

On the upside, immediate resistance could be 1.1420. There is also a bearish trend line forming with resistance at 1.1425. The trend line is close to the 23.6% Fib retracement level of the downward move from the 1.1654 swing high to the 1.1359 low.

A close above the 1.14250 resistance could spark a recovery wave. The next major hurdle might be 1.1455. The main resistance could be 1.1500 and the 100 simple moving average (red, 4-hour).

A close above 1.1500 could start another steady increase. In the stated case, the bulls could aim for a move to 1.1550. If the pair stays below 1.1450, there could be a fresh decline toward the 1.1360 zone. The first major support might be 1.1320. A close below 1.1320 might accelerate the decline. In the stated case, the bears could aim for a move to 1.1240.

Looking at GBP/USD, the bears remained in action, pushed the pair below 1.3250, and they might aim for a move to 1.3150.

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