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EUR/USD Eyes Upside Break Above 1.0600

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Aayush Jindal

Key Highlights

  • EUR/USD recovered and traded above the 1.0550 resistance.
  • A bullish trend line is in place with support near 1.0535 on the 4-hours chart.
  • GBP/USD is facing an uphill task near 1.2400 and 1.2450.
  • Crude oil price dipped before it found support near $103.20.

EUR/USD Technical Analysis

The Euro declined sharply from the 1.0780 zone against the US Dollar. EUR/USD traded as low as 1.0359 before it started a fresh increase.

Looking at the 4-hours chart, the pair was able to climb above the 1.0420 resistance zone. There was a move above the 38.2% Fib retracement level of the key decline from the 1.0773 swing high to 1.0359 low.

The bulls were able to push the pair above the 1.0550 resistance. EUR/USD is now facing a strong resistance near the 1.0600 zone, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

The 50% Fib retracement level of the key decline from the 1.0773 swing high to 1.0359 low is also acting as a resistance.

A clear move above the 1.0600 resistance zone might push the pair towards the 1.0650 level in the near term. The next major resistance might be 1.0750.

On the downside, there is a major support near the 1.0535 level. There is also a bullish trend line in place with support near 1.0535 on the same chart, below which there is a risk of a fresh drop.

Looking at GBP/USD, the pair is facing a couple of key hurdles near 1.0400 and might continue to trade in a range in the short-term.

Economic Releases

  • US Durable Goods Orders for May 2022 – Forecast +0.1% versus +0.5% previous.
  • US Pending Home Sales for May 2022 (YoY) - Forecast -9.8%, versus -9.1% previous.
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