EUR/USD At Risk of Fresh Decline Below 0.9650
- EUR/USD failed to recover above 1.0000 and started a fresh decline.
- A key bearish trend line is forming with resistance near 0.9850 on the 4-hours chart.
- Gold and oil are showing signs of a fresh decline.
- GBP/USD could continue higher if it clears the 1.1500 resistance.
EUR/USD Technical Analysis
The Euro attempted a steady recovery wave above the 0.9850 resistance against the US Dollar. EUR/USD even cleared the 0.9900 zone, but it failed near the parity level.
Looking at the 4-hours chart, the pair traded as high as 0.9999 before it started a fresh decline. There was a clear move below the 0.9850 support zone and the 200 simple moving average (green, 4-hours).
The pair declined below the 50% Fib retracement level of the upward move from the 0.9537 swing low to 0.9999 high. Finally, there was a spike below the 0.9700 level and the 100 simple moving average (red, 4-hours), and
On the downside, an initial support is near the 0.9650 level. It is near the 76.4% Fib retracement level of the upward move from the 0.9537 swing low to 0.9999 high.
A move below the 0.9650 level might send the pair further lower. The next main support sits at the 0.9500 level. A downside break below the 0.9500 zone might send the pair towards the 0.9250 level.
On the upside, the pair is facing resistance near the 0.9820 level. The next major resistance is near the 0.9850 level and a connecting trend line on the same chart. A clear move above the 0.9850 level might send the pair towards the 0.9920 level. The next major hurdle could be near the 1.0000 level.
Looking at gold price, there was a fresh decline below the $1,665 support zone and there is a risk of more losses in the near term.
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