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EUR/USD Could Resume Decline Below 1.0950

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD started a fresh decline from the 1.1135 region.
  • A key bearish trend line is forming with resistance near 1.1050 on the 4-hours chart.
  • GBP/USD is consolidating below the 1.3220 resistance zone.
  • Gold and oil price might start another increase.

 

EUR/USD Technical Analysis

The Euro failed to clear the 1.1135 resistance zone against the US Dollar. EUR/USD started a fresh decline below the 1.1100 level.

Looking at the 4-hours chart, the pair declined below the 1.1050 support zone and settled below the 200 simple moving average (green, 4-hours).

The pair even tested the 50% Fib retracement level of the upward move from the 1.0805 swing low to 1.1137 high. It moved below 1.1000 and the 100 simple moving average (red, 4-hours).

The main support is near the 1.0930 level. It is near the 61.8% Fib retracement level of the upward move from the 1.0805 swing low to 1.1137 high. A downside break below the 1.0930 level might call for a sharp decline.

The next major support sits near the 1.0880 level, below which the pair could revisit 1.0800. On the upside, an immediate resistance is near the 1.1050 level. The main resistance sits near the 1.1120 level. A clear move above the 1.1120 zone could set the pace for a move towards 1.1350.

Looking at GBP/USD, the pair struggled to stay above the 1.3220 support level, which may now act as a resistance in the near term.

Economic Releases

  • Dallas Fed Manufacturing Business Index for March 2022 – Forecast 8, versus 14 previous.