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EUR/USD Consolidates Gains And Eyes Fresh Increase

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Aayush Jindal

Key Highlights

  • EUR/USD surpassed the 1.0850 and 1.0880 resistance levels.
  • A key bullish trend line is forming with support near 1.0885 on the 4-hour chart.
  • GBP/USD rallied above the 1.2650 and 1.2720 resistance levels.
  • Bitcoin price is showing a few positive signs above $26,000.

EUR/USD Technical Analysis

The Euro managed to climb above the 1.0820 resistance against the US Dollar. EUR/USD broke the 1.0850 barrier to move into a positive zone.

Looking at the 4-hour chart, the pair settled above the 1.0880 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

Finally, there was a move above the 1.0950 level. A high was formed near 1.0970 and the pair is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the 1.0803 swing low to the 1.0970 high.

Immediate support is near the 1.0900 level or the 38.2% Fib retracement level of the upward move from the 1.0803 swing low to the 1.0970 high.

There is also a key bullish trend line forming with support near 1.0885 on the same chart. The next major support is near the 1.0850 level. If there is a downside break below the 1.0850 support, the pair could decline toward the 1.0820 support.

Any more losses might send EUR/USD toward 1.0750. If there is a fresh increase, the pair could face resistance near 1.0970. The first major resistance is near the 1.1000 level. If there is a move above the 1.1000 resistance, the pair could rise toward 1.1050.

Looking at GBP/USD, the pair gained pace above the 1.2720 level and might continue to move higher in the near term.

Economic Releases

  • US Housing Starts for May 2023 (MoM) – Forecast 1.40M, versus 1.401M previous.
  • US Building Permits for May 2023 (MoM) – Forecast 1.425M, versus 1.417M previous.
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