EUR/USD Might Continue To Struggle Near 1.1650
- EUR/USD is attempting a recovery wave from the 1.1525 zone.
- It broke a key bearish trend line with resistance near 1.1550 on the 4-hours chart.
- GBP/USD is eyeing an upside break above the 1.3750 resistance.
- USD/JPY extended its rally above the 114.00 resistance.
EUR/USD Technical Analysis
The Euro extended its decline below 1.1600 against the US Dollar. EUR/USD traded as low as 1.1525 before starting an upside correction.
Looking at the 4-hours chart, the pair was able to recover above the 1.1550 resistance. There was a break above a key bearish trend line with resistance near 1.1550.
The pair tested the 23.6% Fib retracement level of the downward move from the 1.1908 swing high to 1.1525 low. It seems like the pair faced resistance near 1.1625 and the 100 simple moving average (red, 4-hours).
The next key resistance is near the 1.1650 level. Any more gains could lift the pair towards the 1.1720 level and the 200 simple moving average (green, 4-hours).
The 50% Fib retracement level of the downward move from the 1.1908 swing high to 1.1525 low is also near the 1.1720 level. If there is no upside break, the pair could start a downside correction. An immediate support is near the 1.1550 level.
The next major support is near 1.1525. Any more losses below the 1.1525 region could open the doors for a larger decline.
Looking at GBP/USD, the pair gained pace above the 1.3650 resistance, and it is now aiming a fresh increase above the 1.1750 resistance.
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