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EUR/USD Gains Pace Above Key Resistance

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD gained pace and surpassed the 1.0700 resistance.
  • A major bullish trend line is forming with support near 1.0665 on the 4-hours chart.
  • GBP/USD is showing signs of upside continuation above 1.2600.
  • USD/JPY could extend losses if it breaks the 126.35 support.

 

EUR/USD Technical Analysis

The Euro formed a base above the 1.0550 level against the US Dollar. EUR/USD started a steady increase and was able to clear the 1.0620 resistance zone.

Looking at the 4-hours chart, the pair gained pace above the 1.0700 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The bulls even pushed the pair above the 1.0750 resistance. On the upside, the bears might remain active near the 1.0800 level. A clear move above the 1.0800 level might push the pair further higher.

The next major barrier could be 1.0920, above which EUR/USD could rally towards the 1.1000 level. If not, the pair might correct lower below 1.0720. On the downside, there is a major bullish trend line forming with support near 1.0665 on the same chart.

A downside break below the trend line could send the pair towards the 1.0620 support. The next key support is near 1.0500.

Looking at GBP/USD, the pair was able to clear the key 1.2600 and 1.2620 resistance levels to start a decent recovery wave.

Economic Releases

  • Euro Zone Consumer Confidence for May 2022 – Forecast -21.1, versus -21.1 previous.
  • Euro Zone Economic Sentiment Indicator for May 2022 – Forecast 104.9, versus 105.0 previous.