EUR/USD Could Rally If It Clears This Hurdle
- EUR/USD is eyeing an upside break above the 1.0700 resistance.
- A connecting bearish trend line is forming with resistance near 1.0710 on the 4-hours chart.
- GBP/USD is aiming a fresh increase above the 1.2200 level.
- The Euro Zone Unemployment Rate could remain at 6.5% in Nov 2022.
EUR/USD Technical Analysis
The Euro corrected lower below the 1.0550 level against the US Dollar. EUR/USD tested the 1.0480 zone and recently started a fresh increase.
Looking at the 4-hours chart, the pair traded as low as 1.0481 and climbed higher. There was a move above the 1.0550 and 1.0600 resistance levels. The bulls were able to push the pair above the 50% Fib retracement level of the downward move from the 1.0713 swing high to 1.0481 low.
The pair is now trading above the 1.0620 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
On the upside, an initial resistance is near the 1.0700 level. There is also a connecting bearish trend line forming with resistance near 1.0710 on the on the same chart. The next major resistance may perhaps be near 1.0720.
A clear move above the 1.0720 resistance might start a steady increase. In the stated case, EUR/USD might start a steady increase. In the stated case, the pair could rise towards the 1.0800 level.
On the downside, there is a key support at 1.0620 and the 100 simple moving average (red, 4-hours). The main support is now forming near the 1.0550 level. A downside break below the 1.0550 zone might push the pair lower.
The next major support sits near the 1.0500 level. Any more losses might open the doors for a move towards the 1.0450 support zone.
Looking at GBP/USD, the pair is rising steadily and there are chances of a move above the 1.2200 resistance zone in the coming sessions.
- Euro Zone Unemployment Rate for Nov 2022 - Forecast 6.5%, versus 6.5% previous.
- Euro Zone Sentix Investor Confidence for Jan 2022 - Forecast -11.1, versus -21 previous.