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EUR/USD At Risk of A Downside Correction, Gold Price Consolidates

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Aayush Jindal

Key Highlights

  • EUR/USD is struggling to clear the 1.0925 resistance zone.
  • A key support is forming near 1.0800 on the 4-hours chart.
  • GBP/USD could aim an upside break above the 1.2450 resistance.
  • Gold price is consolidating near $1,930 and aiming a fresh increase.

EUR/USD Technical Analysis

The Euro made another attempt to clear the 1.0920 and 1.0925 resistance levels against the US Dollar. EUR/USD seems to be struggling to clear the 1.0925 barrier.

Looking at the 4-hours chart, the pair traded as high as 1.0929 and is currently consolidating in a range. There was a minor decline below the 1.0900 level. However, the pair is trading well above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

On the downside, there is a major support at 1.0800 and the 100 simple moving average (red, 4-hours). A downside break below the 1.0800 zone might push the pair lower.

The next major support sits near the 1.0700 level and the 200 simple moving average (green, 4-hours). Any more losses might open the doors for a move towards the 1.0580 support zone.

On the upside, the pair is facing resistance near 1.0920. The first major resistance is near the 1.0950 level. A clear move above the 1.0950 resistance might start a steady increase towards the 1.1000 resistance zone.

Any more gains could open the doors for a move towards the 1.1080 level. The next key hurdle is near 1.1200, above which the pair could climb towards the 1.1320 resistance zone.

Looking at GBP/USD, the pair is consolidating above the 1.2350 zone and might attempt a fresh increase above the 1.2450 resistance.

Economic Releases

  • German Gross Domestic Product for Q4 2022 (YoY) (Preliminary) – Forecast 1.2%, versus 1.3% previous.
  • German Gross Domestic Product for Q4 2022 (QoQ) (Preliminary) – Forecast 0%, versus 0.4% previous.
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