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EUR/USD Attempts Recovery But Faces Key Hurdles

Key Highlights

  • EUR/USD is attempting a recovery wave from the 1.0720 zone.
  • A major bearish trend line is forming with resistance at 1.0830 on the 4-hour chart.
  • GBP/USD is correcting losses and approaching the 1.2650 resistance.
  • Bitcoin price accelerated higher above the $46,500 and $47,500 resistance levels.

 

EUR/USD Technical Analysis

The Euro extended its decline below the 1.0800 level against the US Dollar. EUR/USD tested the 1.0720 zone and is currently attempting a recovery wave.

Looking at the 4-hour chart, the pair climbed above the 1.0750 resistance zone. There was a move above the 23.6% Fib retracement level of the downward move from the 1.0897 swing high to the 1.0722 low.

On the upside, the bulls are facing hurdles near the 1.0810 level. It is close to the 50% Fib retracement level of the downward move from the 1.0897 swing high to the 1.0722 low.

The next key resistance is near the 1.0830 level or the 100 simple moving average (red, 4 hours). There is also a major bearish trend line forming with resistance at 1.0830 on the same chart. A close above the 1.0830 zone could open the doors for more upsides.

The next stop for the bulls might be 1.0880 or the 200 simple moving average (green, 4 hours). Any more gains might send EUR/USD toward the 1.0920 level.

Immediate support is near the 1.0765 level. The first major support sits near the 1.0720 level. The next major support sits at 1.0685, below which the pair might gain bearish momentum. In the stated case, the pair could even revisit the 1.0620 support level.

Looking at Bitcoin, there was a strong increase above the $46,500 resistance zone and the bulls even pumped the price above $48,000.

Economic Releases

  • Fed's Kashkari speech.