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EUR/USD Faces Resistance, Risk of Downside Break

Key Highlights

  • EUR/USD is facing resistance near the 1.0290 zone.
  • A key bullish trend line is forming with support near 1.0145 on the 4-hours chart.
  • GBP/USD is struggling to stay above the 1.2000 support zone.
  • Crude oil price extended its decline below the $90 support.


EUR/USD Technical Analysis

The Euro started a decent upward move above the 1.0150 resistance zone against the US Dollar. EUR/USD even traded above 1.0220 before the bears appeared.

Looking at the 4-hours chart, the pair faced a strong resistance near the 1.0295 level. A high was formed near the 1.0296 level and the price is now correcting lower.

There was a move below the 1.0250 support zone. The pair even settled below the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

It is now struggling to stay above the 1.0160 support zone. The first major support is near the 1.0150 level. There is also a key bullish trend line forming with support near 1.0145 on the same chart. A downside break below the trend line support might spark a sharp decline.

The next major support is near 1.0100. Any more losses might send the pair towards the 1.0050 zone. On the upside, the pair is facing resistance near the 1.0250 level.

The next major resistance is near the 1.0290 level, above which the pair could accelerate higher. In the stated case, the pair could rise towards the 1.0350 resistance zone in the near term.

Looking at crude oil price, there was a sharp decline below the $95.00 and $92.0 support levels. The price even traded below the $90.00 level and remains at a risk of more downsides.

Economic Releases

  • Euro Zone Sentix Investor Confidence for August 2022 - Forecast -24.7, versus -26.4 previous.