(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })(); (function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

EUR/USD Could Resume Downtrend Below 0.9650

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD failed to surpass 1.0000 and reacted to the downside.
  • A key bearish trend line is forming with resistance near 0.9880 on the 4-hours chart.
  • GBP/USD failed to recover above the 1.1500 resistance and declined.
  • Crude oil price rallied above the $90 resistance zone.

 

EUR/USD Technical Analysis

The Euro attempted a recovery wave above the 0.9800 resistance against the US Dollar. EUR/USD climbed above the 0.9880 resistance, but it struggled near the parity level.

Looking at the 4-hours chart, the pair struggled to climb above the 0.9980 and 1.0000 resistance levels. A high was formed near 0.9999 and the pair reacted the downside. There was a move below the 0.9950 and 0.9900 support levels.

The pair declined below the 50% Fib retracement level of the upward move from the 0.95.36 swing low to 0.9999 high. It even settled below the 0.9850 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

On the downside, an initial support is near the 0.9700 level. The main support sits at the 0.9650 level. It is close to the 76.4% Fib retracement level of the upward move from the 0.95.36 swing low to 0.9999 high.

A downside break below the 0.9650 zone might send the pair towards the 0.9550 level or even to a new multi-year low.

An immediate resistance is near the 0.9820 level. The next major resistance is near the 0.9880 level. There is also a key bearish trend line forming with resistance near 0.9880 on the same chart.

A clear move above the 0.9880 level might send the pair towards the 0.9950 level. The next major hurdle could be near the 1.0000 level.

Looking at GBP/USD, the pair also failed to clear the 1.1500 resistance zone and there was a bearish reaction below the 1.1250 level.

Economic Releases

  • Euro Zone Sentix Investor Confidence for Oct 2022 - Forecast -30.8, versus -31.8 previous.
  • IMF Meeting.