- EUR/USD failed to extend recovery above the 1.1120 resistance zone.
- A major bearish trend line is forming with resistance near 1.1100 on the 4-hours chart.
- GBP/USD remains at a risk of a sharp decline below 1.3000.
- Gold and oil prices consolidated gains above $1,975 and $100 respectively.
EUR/USD Technical Analysis
The Euro found support near 1.0800 against the US Dollar. EUR/USD started a recovery wave above the 1.1000 resistance, but it faced a lot of hurdles.
Looking at the 4-hours chart, the pair was able to recover above the 38.2% Fib retracement level of the key decline from the 1.1359 swing high to 1.0805 low. However, the pair faced a strong resistance near the 1.1120 level.
EUR/USD stayed below the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours). It failed to clear the 50% Fib retracement level of the key decline from the 1.1359 swing high to 1.0805 low.
There is also a major bearish trend line forming with resistance near 1.1110 on the same chart. It is now moving lower and trading below 1.1000.
The first major support is near the 1.0850 level. The main support is near the 1.0800 zone. A successful break below the 1.0800 support could start another major decline. On the upside, the pair could face resistance near the 1.1000 level.
The main hurdle sits near the 1.1120 level and the 100 simple moving average (red, 4-hours), above which EUR/USD may perhaps start a steady increase.
Looking at GBP/USD, the pair remained in a bearish zone and there is a risk of a sharp decline if there is a close below the 1.3000 support zone.
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