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EUR/USD Could Extend Gains Unless This Support Fails

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Aayush Jindal

Key Highlights

  • EUR/USD started a decent increase and climbed above 1.0750.
  • A key bullish trend line is forming with support at 1.0700 on the 4-hour chart.
  • Gold prices cleared the $2,335 resistance to move into a positive zone.
  • Oil prices are showing bearish signs below the $80.00 region.

EUR/USD Technical Analysis

The Euro started a decent increase above the 1.0685 resistance against the US Dollar. EUR/USD cleared the 1.0720 resistance to move into a positive zone.

Looking at the 4-hour chart, the pair surpassed the 50% Fib retracement level of the downward move from the 1.0885 swing high to the 1.0601 low. It also settled above the 100 simple moving average (red, 4-hour) and tested the 200 simple moving average (green, 4-hour).

The bears are now active near the 1.0800 level. The first major resistance is near 1.0820 or the 76.4% Fib retracement level of the downward move from the 1.0885 swing high to the 1.0601 low.

A clear move above the 1.0820 resistance might send it toward the 1.0865 level. Any more gains might call for a move toward the 1.0920 level in the near term.

Immediate support is near the 1.0740 level and the 200 simple moving average (green, 4-hour). The next major support is at 1.0720. There is also a key bullish trend line forming with support at 1.0700 on the same chart.

If there is a downside break below the 1.0720 support, the pair might test 1.0665. Any more losses might send the pair toward 1.0600.

Looking at Oil, the bears are active below the $80.00 resistance zone and they might aim for more losses in the near term.

Economic Releases

  • Eurogroup Meeting.
  • Fed's Jefferson speech.
Great