Aayush Jindal
Key Highlights
- EUR/USD failed to clear 1.1270 and trimmed most gains.
- It traded below a bullish trend line with support at 1.1195 on the 4-hour chart.
- GBP/USD started a downside correction from the 1.3500 resistance.
- Gold prices could start a fresh increase if there is a close above $4,120.
EUR/USD Technical Analysis
The Euro failed to clear the key hurdle at 1.1270 against the US Dollar. EUR/USD faced a rejection and started a fresh decline below 1.1220.
Looking at the 4-hour chart, the pair traded below a bullish trend line with support at 1.1195. There was a close below 1.1180, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
The pair traded below the 61.8% Fib retracement level of the upward move from the 1.1104 swing low to the 1.1273 high. If the bears remain in action, the pair could drop toward the 1.1120 level.
The first major support could be 1.1100. A close below 1.1100 might accelerate the decline. In the stated case, the pair might drop to 1.1040. On the upside, the first major resistance might be 1.1180. The main resistance could be 1.1220.
A close above 1.1220 could start a steady increase. In the stated case, the pair might revisit the key hurdle at 1.1270. To continue higher, EUR/USD must settle above 1.1270.
Looking at GBP/USD, there was a steady upward move, but the pair failed to gain strength for a move above 1.3500 and trimmed some gains.
Upcoming Key Economic Events:
- Eurogroup Meeting.
- Fed's Bowman speech.
- Fed's Goolsbee speech.
