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EUR/USD Could Struggle To Recover Above 1.0900

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD started a fresh decline from well above 1.1050.
  • A key bearish trend line is forming with resistance near 1.0840 on the 4-hour chart.
  • GBP/USD is consolidating losses below the 1.2500 resistance.
  • USD/JPY is showing positive signs above the 137.00 level.

 

EUR/USD Technical Analysis

The Euro started a major decline from well above 1.1050 against the US Dollar. EUR/USD traded below the 1.0920 support to move into a bearish zone.

Looking at the 4-hour chart, the pair settled below the 1.0900 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

It even traded below the 1.0840 support level. A low is formed near 1.0761 and the pair is now attempting a recovery wave. Immediate resistance is near the 1.0840 level. There is also a key bearish trend line forming with resistance near 1.0840 on the same chart.

The next major resistance is near 1.0885, above which the pair could rise toward the 1.0900 level. The main resistance is now near 1.0940 and the 100 simple moving average (red, 4 hours).

On the downside, the pair might find bids near 1.0780. The next major support is near the 1.0760 level. If there is a downside break below the 1.0760 level, the pair could test the 1.0720 support level. The next major support sits near the 1.0650 level.

Looking at GBP/USD, the pair could start a fresh increase if the bulls are able to clear the 1.2500 resistance zone.

Economic Releases

  • Euro Zone Consumer Confidence for May 2023 (Preliminary) – Forecast -17.0, versus -17.5 previous.