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EUR/USD Corrects Gains, Resistance Turned Support

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Aayush Jindal

Key Highlights

  • EUR/USD rallied after it broke the 1.1400 resistance zone.
  • A major bullish trend line is forming with support near 1.1340 on the 4-hours chart.
  • GBP/USD rallied above 1.3700 before it faced sellers.
  • USD/JPY found support near 113.60 and corrected higher.

EUR/USD Technical Analysis

This past week, the Euro started a major increase after it cleared the 1.1380 resistance against the US Dollar. EUR/USD rallied above 1.1400 to move into a positive zone.

Looking at the 4-hours chart, the pair gained pace above the 1.1420 level. There was a close above the 1.1400 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The pair climbed above the 1.1450 level and traded as high as 1.1482. It is now correcting gains below 1.1450. There was a break below the 23.6% Fib retracement level of the upward move from the 1.1284 low to 1.1482 high.

On the downside, an immediate support is near the 1.1380 (resistance turned support) level. It is close to the 50% Fib retracement level of the upward move from the 1.1284 low to 1.1482 high.

The main support is forming near the 1.1340 level. There is also a major bullish trend line forming with support near 1.1340 on the same chart, below which the pair could drop to 1.1280.

On the upside, the pair is facing resistance near 1.1450 level. The next major resistance is near the 1.1480 level, above which the pair could test 1.1550.

Looking at GBP/USD, there was a strong upward move above the 1.3600 and 1.3650 resistance levels.

Economic Releases

  • German Buba Monthly Budget.
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