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EUR/USD Dips Further as Sellers Maintain Control Over Short-Term Trend

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Aayush Jindal

Key Highlights

  • EUR/USD started a fresh decline and traded below 1.1550.
  • A bearish trend line is forming with resistance at 1.1530 on the 4-hour chart.
  • GBP/USD started a consolidation phase below 1.3150.
  • Gold is struggling to clear the $4,100 and $4,120 resistance levels.

EUR/USD Technical Analysis

The Euro failed to continue higher above 1.1620 against the US Dollar. EUR/USD formed a short-term top and started a fresh decline below 1.1575.

Looking at the 4-hour chart, the pair settled below 1.1550, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even spiked below 1.1520 and tested the 1.1490 zone.

A low was formed at 1.1491 and the pair is now consolidating losses. On the upside, the pair faces resistance near the 1.1530 zone. There is also a bearish trend line forming with resistance at 1.1530.

The first key hurdle sits at 1.1550. A close above 1.1550 might send the pair higher toward 1.1620. The next resistance could be 1.1650. Any more gains could set the pace for a steady increase toward 1.1720.

On the downside, there is a key support at 1.1500. The next support is 1.1465, below which the pair could start a steady decline to 1.1420. A close below 1.1420 could start a pullback toward 1.1350.

Looking at GBP/USD, the pair failed to recover steadily and is now at risk of another decline, possibly below the 1.3050 support.

Upcoming Key Economic Events:

  • ECB's President Lagarde speech
  • ECB's Cipollone speech.
  • ECB's Elderson speech.
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