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Aayush Jindal

Key Highlights

  • EUR/USD rallied toward 1.1020 before it corrected lower.
  • A major bullish trend line is forming with support near 1.0880 on the 4-hour chart.
  • GBP/USD is consolidating gains above the 1.2650 level.
  • Gold prices surged higher above $2,100 and $2,120.

EUR/USD Technical Analysis

The Euro started a strong increase above the 1.0820 resistance against the US Dollar. EUR/USD even spiked above 1.1000 before the bears appeared.

Looking at the 4-hour chart, the pair above the 1.0850 pivot level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

A high was formed near 1.1017 before the pair corrected lower. There was a move below the 1.0950 and 1.0920 level. It is now testing the 1.0880 support. There is also a major bullish trend line forming with support near 1.0880 on the same chart.

The next key support is near 1.0825 or the 38.2% Fib retracement level of the upward move from the 1.0516 swing low to the 1.1017 high.

The next key support sits at 1.0765, below which the pair could test the 1.0720 pivot level in the near term. Any more losses might call for a move toward 1.0660.

On the upside, immediate resistance is near the 1.0900 level. The next key resistance is near the 1.0920 level. A close above the 1.0920 zone could open the doors for more upsides. The next stop for the bulls might be 1.1020.

Looking at Gold, there was a strong increase above the $2,100 resistance before the bears appeared and there was a downside correction.

Economic Releases

  • ECB's President Lagarde speech.