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EUR/USD Faces Significant Resistance, Dollar Weakens Further

Key Highlights

  • EUR/USD is facing strong resistance near 1.1090.
  • A key bullish trend line is forming with support at 1.0975 on the 4-hour chart.
  • GBP/USD climbed further above the 1.2620 resistance.
  • Gold price corrected gains and traded below $2,030.


EUR/USD Technical Analysis

The Euro made another attempt to clear 1.1090 against the US Dollar. However, EUR/USD failed to gain strength and corrected gains from the 1.1091 high.

Looking at the 4-hour chart, the pair started a downside correction below the 1.1020 support. It even spiked below the 1.1000 level and the 100 simple moving average (red, 4 hours).

A low is formed near 1.0966 and the pair is now stuck in a broad range. There is also a key bullish trend line forming with support at 1.0975 on the same chart. Immediate resistance on the upside is near the 1.1050 level.

The next key resistance is near the 1.1090 level. A clear upside break and close above the 1.1090 resistance might start a steady increase. The next key resistance is near the 1.1150 zone. Any more gains might send the pair toward 1.1200.

On the downside, the bulls might remain active near 1.0980. The next major support is near the 1.0950 level or the 200 simple moving average (green, 4 hours).

If there is a downside break below the 1.0950 support, the pair could accelerate lower. In the stated case, the pair might even test 1.0880.

Looking at Gold price, it traded to a new all-time high at $2,079.84 before the bears appeared and initiated a downside correction to $2,000.

Economic Releases

  • Germany’s Industrial Production for March 2023 (MoM) - Forecast -1%, versus +2 % previous.