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EUR/USD Could Recover If It Closes Above This Level

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD declined and retested the 1.0365 support zone.
  • A major bearish trend line is forming with resistance near 1.0520 on the 4-hours chart.
  • GBP/USD is facing a major hurdle near the 1.2300 zone.
  • Gold price dipped below $1,800 and oil price struggled to surpass $115.

 

EUR/USD Technical Analysis

The Euro started a fresh decline from the 1.0620 resistance zone against the US Dollar. EUR/USD traded below the 1.0520 support zone to move into a bearish zone.

Looking at the 4-hours chart, the pair settled below the 1.0500 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

The pair even traded below the 1.0420 support, but the bulls were active near the 1.0365 support. A low is formed near the 1.0365 and seems like there are chances of a double bottom pattern near the 1.0350 zone.

On the upside, the pair is facing resistance near the 1.0480 zone. The next major resistance sits near the 1.0500 level and a major bearish trend line with resistance near 1.0520 on the same chart.

A close above the 1.0520 and the 100 simple moving average (red, 4-hours) could start a recovery wave. In the stated case, the pair could revisit the 1.0620 resistance.

On the downside, the 1.0380 level is a decent support. The main support sits near the 1.0365 level. A downside break below the 1.0365 support could send the pair further lower. The next major support sits near the 1.0320 zone. Any more losses might call for a correction towards the 1.0250 support zone.

Looking at GBP/USD, the pair declined further below the 1.2250 support and remains in a bearish zone unless there is a clear move above 1.2300.

Economic Releases

  • Euro Zone Sentix Investor Confidence for July 2022 - Forecast -20.0, versus -15.8 previous.