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EUR/USD Consolidates Gains, Are Dips Supported?

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Aayush Jindal

Key Highlights

  • EUR/USD rallied above the 1.0820 resistance zone.
  • A key bullish trend line is forming with support at 1.0850 on the 4-hour chart.
  • GBP/USD gained bullish momentum and almost tested the 1.3000 resistance.
  • Gold prices are now consolidating near the $2,400 zone.

EUR/USD Technical Analysis

The Euro started a steady increase above the 1.0800 level against the US Dollar. EUR/USD cleared the 1.0820 and 1.0850 resistance levels to enter a positive zone.

Looking at the 4-hour chart, the pair settled above the 1.0850 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even spiked above the 1.0900 level and tested the 1.0910-1.0920 resistance zone.

It is now consolidating gains near the 1.0880 zone. If there is a fresh increase, the pair could face resistance near the 1.0910 level. The next resistance sits at 1.0920.

The main hurdle sits at 1.0950. A clear move above the 1.0950 resistance might send it toward the 1.1000 level. Any more gains might open the doors for a test of the 1.1050 zone in the coming days.

Immediate support is near the 1.0880 level. The next major support is near the 1.0850 level. There is also a key bullish trend line forming with support at 1.0850 on the same chart. A downside break and close below the 1.0850 support zone could open the doors for more losses.

Looking at Gold, the price gained bullish momentum above the $2,400 level and the bulls seem to be in control above the $2,380 level.

Economic Releases

  • NY Empire State Manufacturing Index for July 2024 – Forecast -6.0, versus -6.0 previous.
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