(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=');

Aayush Jindal

Key Highlights

  • EUR/USD started an upside correction from the 1.1680 region.
  • A major bearish trend line is forming with resistance near 1.1755 on the 4-hours chart.
  • GBP/USD is facing an uphill task near 1.3750 and 1.3800.
  • Gold price remains at a risk of more downsides below $1,740.

EUR/USD Technical Analysis

The Euro extended its decline below the 1.1700 zone against the US Dollar. EUR/USD traded as low as 1.1683 before it started an upside correction.

Looking at the 4-hours chart, the pair recovered above the 1.1720 resistance level. There was a break above the 50% Fib retracement level of the recent decline from the 1.1788 high to 1.1683 low.

However, the bears seem to be protecting the 1.1750 resistance zone. It is near the 61.8% Fib retracement level of the recent decline from the 1.1788 high to 1.1683 low. There is also a major bearish trend line forming with resistance near 1.1755 on the same chart.

The main resistance is forming near the 1.1800 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

A close above 1.1800 could start a steady increase. If not, there is a risk of more losses below 1.1700. An immediate support is near the 1.1680, below which the pair could dive towards 1.1620.

Looking at GBP/USD, the pair attempted a strong recovery from 1.3600, but it faced a major resistance near the 1.3750 region.

Economic Releases

  • US Durable Goods Orders for August 2021 – Forecast +0.6% versus -0.1% previous.
  • US Nondefense Capital Goods Orders ex Aircraft for August 2021 – Forecast +0.1% versus 0% previous.