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EUR/USD Corrects Lower, Key Support Nearby

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD started a downside correction from the 1.1900 region.
  • It broke a major bullish trend line with support near 1.1840 on the 4-hours chart.
  • GBP/USD recovered losses, but it is still facing hurdles near 1.3880.
  • Gold price is showing a few bearish signs below the $1,800 support.

 

EUR/USD Technical Analysis

The Euro started a steady increase after it broke the 1.1800 resistance against the US Dollar. EUR/USD climbed above 1.1850, but it struggled to gain pace above 1.1900.

Looking at the 4-hours chart, the pair traded as high as 1.1909 before correcting lower. There was a break below the 1.1880 and 1.1850 support levels. Besides, there was a break below a major bullish trend line with support near 1.1840.

The pair traded below the 38.2% Fib retracement level of the upward move from the 1.1663 swing low to 1.1909 high.

On the downside, there is a major support waiting near 1.1785, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).

The 50% Fib retracement level of the upward move from the 1.1663 swing low to 1.1909 high is also near the 1.1785 level. If the pair fails to stay above the 1.1785 support zone, there is a risk of a move towards the 1.1720 support.

On the upside, an initial resistance is near the 1.1850 level. The first major resistance is near the 1.1880 level. The main hurdle sits near the 1.1900 level, above which EUR/USD might rise towards the 1.2000 level.

Looking at GBP/USD, the pair corrected lower, but it bounced back from 1.3740 and it climbed above the 1.3800 resistance zone. Besides, USD/JPY is still facing resistance near the 110.20 level.

Economic Releases

  • US Monthly Budget Statement.