(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

EUR/USD Aims Recovery But Faces Many Hurdles

Article background

Aayush Jindal

Key Highlights

  • EUR/USD is consolidating losses above the 1.0600 support.
  • A key bearish trend line is forming with resistance at 1.0670 on the 4-hour chart.
  • GBP/USD extended losses and traded below 1.2420.
  • Crude oil prices declined below the $82.50 support zone.

EUR/USD Technical Analysis

The Euro extended losses and traded below the 1.0650 support against the US Dollar. EUR/USD tested the 1.0600 zone and recently started a consolidation phase.

Looking at the 4-hour chart, the pair traded as low as 1.0601 and settled well below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).

It is now consolidating and attempting a recovery wave above 1.0640. EUR/USD is testing the 23.6% Fib retracement level of the downward move from the 1.0885 swing high to the 1.0601 low and facing resistance at 1.0665.

There is also a key bearish trend line forming with resistance at 1.0670 on the same chart. The first key resistance is near the 1.0750 zone. It is close to the 50% Fib retracement level of the downward move from the 1.0885 swing high to the 1.0601 low and the 100 simple moving average (red, 4-hour).

A clear move above the 1.0750 resistance could send the pair further higher. In the stated case, EUR/USD bulls could even aim for a move toward 1.0840.

Immediate support is near the 1.0620 level. The next major support is at 1.0600. If there is a downside break below the 1.0600 support, the pair might test 1.0550. The main support is now forming at 1.0520. Any more losses might send the pair toward 1.0485.

Looking at Oil, the bears remained in control amid the Israel-Iran war situation. There was a drop below $82.50, and the bears could aim for more downsides.

Economic Releases

  • Euro Zone Consumer Confidence for April 2024 (Preliminary) – Forecast -14.0, versus -14.9 previous.
Great