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EUR/USD Looks Upward: Is A Breakout Imminent?

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Aayush Jindal

Key Highlights

  • EUR/USD is aiming for a fresh increase above the 1.0930 resistance.
  • A key declining channel is forming with resistance at 1.0925 on the 4-hour chart.
  • GBP/USD is eyeing a recovery wave above the 1.2800 resistance zone.
  • Oil prices are gaining pace for a move above the $77.00 resistance.

EUR/USD Technical Analysis

The Euro started a downside correction from the 1.1000 resistance zone against the US Dollar. EUR/USD could start another increase if it clears the 1.0950 resistance.

Looking at the 4-hour chart, the pair remained stable above the 1.0850 level, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour). The pair tested the 50% Fib retracement of the upward move from the 1.0777 swing low to the 1.1008 high.

The pair is now consolidating near the 1.0920 level. There is also a key declining channel forming with resistance at 1.0925 on the same chart.

Immediate resistance sits near the 1.0925 level. The next resistance sits at 1.0950. A clear move above 1.0950 could open the door to more gains. In the stated case, the pair could rise and test 1.1000. Any more gains could send the pair toward the 1.1050 level.

Immediate support is near the 1.0885 level. The next major support is near the 1.0850 level. A downside break and close below the 1.0850 support zone could open the doors for more losses. In the stated case, EUR/USD might decline toward the 1.0780 level.

Looking at Oil, the price started a recovery wave above the $76.50 level but the bears might remain active near the $77.50 level.

Economic Releases

  • US Monthly Budget Statement.
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