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EUR/USD Breaks Higher, Why It Could Revisit 1.1000

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD started a fresh increase above the 1.0800 resistance.
  • A connecting bullish trend line is forming with support near 1.0820 on the 4-hours chart.
  • GBP/USD started a fresh increase above the 1.2250 resistance zone.
  • USD/JPY extended its decline below the 129.50 support zone.

 

EUR/USD Technical Analysis

The Euro started a fresh increase above the 1.0750 resistance zone against the US Dollar. EUR/USD broke the 1.0800 resistance to move into a positive zone.

Looking at the 4-hours chart, the pair settled above the 1.0800 zone, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

The pair gained pace above the 1.0820 resistance zone. The pair is now showing a lot of positive signs and trading above 1.0850. On the upside, an initial resistance is near the 1.0880 level. The next major resistance may perhaps be near 1.0920.

A clear move above the 1.0920 resistance might start a steady increase. In the stated case, EUR/USD could even surpass the 1.0980 zone. The next key hurdle is near 1.1000, above which the pair could climb towards the 1.1120 resistance zone.

On the downside, there is a major support at 1.0820. The next major support is near the 1.0780 level. A downside break below the 1.0780 zone might push the pair lower.

The next major support sits near the 1.0720 level. Any more losses might open the doors for a move towards the 1.0650 support zone.

Looking at GBP/USD, the pair is gaining pace above the 1.2250 resistance and might continue to rise in the near term.

Economic Releases

  • German Wholesale Price Index for Dec 2022 (MoM) – Forecast -1.4%, versus -0.9% previous.