EUR/USD Breaks Key Resistance, Oil Breaches $60

Key Highlights

  • EUR/USD started a fresh increase above the 1.2080 and 1.2100 resistance levels.
  • There was a break above a major bearish trend line at 1.2090 on the 4-hours chart.
  • GBP/USD extended its rally above 1.3850 and it remains in a strong uptrend.
  • Gold price failed to surpass $1,860 and it is showing a few bearish signs.
  • Oil price rallied further above the $58.50 and $60.00 resistance levels.

 

EUR/USD Technical Analysis

After trading as low as 1.1952, the Euro started a fresh increase against the US Dollar. EUR/USD cleared the 1.2000 and 1.2050 resistance levels to move into a positive zone.

Looking at the 4-hours chart, the pair even cleared the 1.2100 resistance level and a major bearish trend line at 1.2090. There was a clear break above the 1.2120 level and the 100 simple moving average (red, 4-hours).

The pair tested the 1.2150 resistance level and the 200 simple moving average (green, 4-hours). A high was formed near 1.2149 before there was a minor downside correction.

On the downside, the 1.2080 level is acting as a decent support. The next major support is near the 1.2050 level. If EUR/USD fails to stay above the 1.2050 support, there is a risk of more downsides in the near term.

On the upside, the pair is facing resistance near the 1.2150 level. A close above 1.2150 and the 200 simple moving average (green, 4-hours) will most likely open the doors for steady increase. The next major resistance sits at 1.2200.

Looking at GBP/USD, the pair gained pace above the 1.3750 resistance. It even broke the 1.3800 level and tested the 1.3880 zone.

Economic Releases

  • Euro Zone Industrial Production Dec 2020 (MoM) – Forecast -0.6%, versus +2.5% previous.