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EUR/USD At Risk of Downside Break

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD struggled to stay above 1.1300 and started a fresh decline.
  • A key bearish trend line is forming with resistance near 1.1280 on the 4-hours chart.
  • GBP/USD gained bearish momentum below the 1.3400 support zone.
  • Gold price spiked higher to $1,975 before correcting lower.

 

EUR/USD Technical Analysis

The Euro started a fresh decline from well above 1.1450 against the US Dollar. EUR/USD declined below the 1.1320 support zone to enter a bearish zone.

Looking at the 4-hours chart, the pair traded below the 1.1300 support zone. There was a close below the 1.1280 support zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

It even declined below 1.1150 and traded as low as 1.1106. It is now consolidating losses above the 1.1100 level. On the upside, the pair is facing a strong resistance near the 1.1250 level.

There is also a key bearish trend line forming with resistance near 1.1250 on the same chart. The next major resistance sits near the 1.1350 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

A close above 1.1350 might send EUR/USD higher towards 1.1450. On the downside, the pair might find bids near the 1.1120 level. If there are additional losses, the pair might dive to 1.1050.

Looking at GBP/USD, the pair accelerated lower the 1.3420 and 1.3400 support levels. Besides, gold price is still in a positive zone above the $1,900 level.

Economic Releases

  • Chicago Purchasing Manager’s Index for Feb 2021 – Forecast 63.9, versus 65.2 previous.