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EUR/USD Could Struggle To Settle Above 1.2000

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD started an upside correction from the 1.1835 low.
  • It is now facing a strong resistance near 1.2000 and 1.2025.
  • GBP/USD is facing an uphill task near the 1.4000 pivot level.
  • USD/JPY is in a major uptrend above 108.00 and 108.50.

 

EUR/USD Technical Analysis

This past week, the Euro found support near the 1.1835 level against the US Dollar. EUR/USD started a decent recovery above 1.1900, but it is facing a lot of hurdles near 1.2000.

Looking at the 4-hours chart, the pair climbed above the 1.1920 resistance zone. There was also a break above a key bearish trend line at 1.1930 on the same chart. It opened the doors for a move above the 1.1950 resistance.

However, the pair faced resistance near 1.1990. It seems like the 50% Fib retracement level of the downward move from the 1.2113 high to 1.1835 low acted as a resistance.

The pair is clearly facing a strong resistance near 1.2000 and 1.2025. The 100 simple moving average (red, 4-hours) is also near the 1.2040 level to act as a hurdle. A clear break above the 1.2025 and 1.2050 levels could open the doors for a steady increase.

Conversely, the pair could start a fresh decline below the 1.1900 support zone. The next major support is near 1.1840, below which there is a risk of a drop towards the 1.1800 level.

Looking at GBP/USD, the pair is facing a strong resistance near the 1.4000 level. Besides, USD/JPY is consolidating gains above the 108.00 and 108.20 support levels.

Economic Releases

  • NY Empire State Manufacturing Index for March 2021 – Forecast 14.5, versus 12.1 previous.
  • Canada’s Manufacturing Sales for Jan 2021 (MoM) - Forecast +0.6%, versus +0.9% previous.