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EUR/USD Could Recover If It Clears 1.1400

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD is consolidating above the 1.1220 support zone.
  • It cleared a major bearish trend line with resistance near 1.1285 on the 4-hours chart.
  • GBP/USD might start an upside correction above the 1.3300 resistance.
  • Crude oil price seems to be forming a base for a fresh increase above $73.50.

 

EUR/USD Technical Analysis

The Euro found support near the 1.1200 and 1.1220 support levels against the US Dollar. EUR/USD is now attempting a recovery wave above the 1.1300 resistance zone.

Looking at the 4-hours chart, the pair is attempting a decent upward move above the 1.1300 resistance. The pair even climbed above the 23.6% Fib retracement level of the downward move from the 1.1608 swing high to 1.1186 low.

There was also a break above a major bearish trend line with resistance near 1.1285 on the same chart. The pair even climbed above the 1.1320 level and the 100 simple moving average (red, 4-hours). On the upside, the bulls are now facing resistance near the 1.1380 level.

The next key resistance is near the 50% Fib retracement level of the downward move from the 1.1608 swing high to 1.1186 low. The main resistance is near the 1.1400 level and the 200 simple moving average (green, 4-hours).

A clear break above the 1.1380 and 1.1400 resistance levels could open the doors for a steady upward move. If not, there could be a fresh decline below the 1.1280 support. The next major support is near the 1.1220 level, below which the pair could decline heavily.

Looking at GBP/USD, the pair spiked below the key 1.3200 support zone, and it is now attempting an upside correction.

Economic Releases

  • German Wholesale Price Index for Nov 2021 (MoM) – Forecast +1.0%, versus +1.6% previous.