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EUR/USD At Clear Risk of More Downsides

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD started a fresh decline from the 1.0640 resistance zone.
  • A key bearish trend line is forming with resistance near 1.0470 the 4-hours chart.
  • GBP/USD recovered higher, but it is facing resistance near 1.2300.
  • Gold price extended decline and tested the $1,800 level.

 

EUR/USD Technical Analysis

The Euro remained in a bearish zone below the 1.0800 level against the US Dollar. EUR/USD settled below 1.0650 to move further into a bearish zone.

Looking at the 4-hours chart, the pair traded below the 1.0500 support, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours). The bears even pushed the pair below the 1.0400 level.

A low is formed near 1.0349 and the pair is now consolidating losses. On the upside, an initial resistance is forming near the 1.0420 level.

The next major resistance is near the 1.0470 level and a key bearish trend line on the same chart. A clear move above the 1.0450 and 1.0470 levels might push the pair towards the key 1.0500 resistance zone.

If there is no upside break, the pair could extend decline below the 1.0350 level. The next major support is near the 1.0300 level. Any more losses may perhaps push EUR/USD towards the 1.0250 level.

Looking at GBP/USD, the pair extended decline below the 1.2200 support zone before the bulls initiated a recovery wave.

Economic Releases

  • NY Empire State Manufacturing Index for May 2022 – Forecast 15.5, versus 24.6 previous.