Aayush Jindal
Key Highlights
- EUR/USD started a fresh increase from the 1.1400 zone.
- A major bearish trend line is forming with resistance at 1.1680 on the 4-hour chart.
- GBP/USD recovered losses and climbed above 1.3400.
- Gold is attempting a fresh increase above the $3,375 resistance.
EUR/USD Technical Analysis
The Euro found support near 1.1400 and recovered against the US Dollar. EUR/USD climbed above the 1.1450 and 1.1550 resistance levels.
Looking at the 4-hour chart, the pair cleared the 61.8% Fib retracement level of the downward move from the 1.1788 swing high to the 1.1391 low. There was a close above the 100 simple moving average (red, 4-hour) and the pair tested the 200 simple moving average (green, 4-hour).
On the upside, the pair now faces resistance near the 1.1680 level and the 200 simple moving average (green, 4-hour). There is also a major bearish trend line forming with resistance at 1.1680 on the same chart.
The next key resistance sits near the 1.1720 level. A close above the 1.1720 level could set the pace for another increase. In the stated case, the pair could rise toward the 1.1750 resistance, above which the bulls could aim for a move toward 1.1840.
On the downside, immediate support is near the 1.1600 level. The next key support sits near 1.1580. Any more losses could send the pair toward the 1.1550 support zone.
Looking at GBP/USD, the pair started a recovery wave, and the bulls might soon aim for a move toward the 1.3550 level.
Upcoming Key Economic Events:
- US 3-Month Bill Auction .
- US 6-Month Bill Auction.
