EUR/USD Could Struggle To Recover Above 1.0650
- EUR/USD tumbled below 1.0650 and 1.0550.
- It traded to a new multi-month low below 1.0480.
- GBP/USD fell sharply and tested 1.2440, while USD/JPY jumped above 131.00.
- The US ISM Manufacturing Index could increase from 57.1 to 58.0 in April 2022.
EUR/USD Technical Analysis
The Euro gained bearish momentum after it broke the 1.0750 support against the US Dollar. EUR/USD traded below the 1.0650 support to enter a bearish zone.
Looking at the 4-hours chart, the pair tumbled below the 1.0600 level. It even settled below 1.0600, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
Finally, there was a spike below the 1.0500 level and the pair traded to a new multi-month low at 1.0471. It is now correcting losses above the 1.0500 level. There was a move above a steep bearish trend line at 1.0525 on the same chart.
An immediate resistance is near the 1.0650 level. It is near the 38.2% Fib retracement level of the key decline from the 1.0936 swing high to 1.0471 low.
The next major resistance is seen near the 1.0700 level or the 50% Fib retracement level of the key decline from the 1.0936 swing high to 1.0471 low, above which the pair could start a steady increase.
If not, there is a risk of more losses below 1.0500. The next major support is near the 1.0475 level. Any more losses may perhaps open the doors for a move towards the 1.0420 support zone.
Looking at GBP/USD, the pair gained bearish momentum below the 1.2750 support and even spiked below 1.2500.
- Euro Zone Consumer Confidence for April 2022 – Forecast -16.9, versus -16.9 previous.
- US ISM Manufacturing Index for April 2022 – Forecast 58.0, versus 57.1 previous.