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EUR/USD On Shaky Ground – Recovery Looks Fragile As Bears Lurk Nearby

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Aayush Jindal

Key Highlights

  • EUR/USD is attempting to recover from 1.1650.
  • A major bearish trend line is forming with resistance near 1.1750 on the 4-hour chart.
  • GBP/USD is also correcting losses but faced hurdles near 1.3525.
  • Gold extended gains and rallied above $3,880.

EUR/USD Technical Analysis

The Euro declined below 1.1720 against the US Dollar before the bulls appeared. EUR/USD tested 1.1650 and recently started a recovery wave.

Looking at the 4-hour chart, the pair recovered above 1.1700 and 1.1750 before it faced resistance. A high was formed at 1.1778 and the pair is now consolidating below the 100 simple moving average (red, 4-hour).

Besides, there is a major bearish trend line forming with resistance near 1.1750. A clear move above 1.1750 could send the pair toward the 1.1780 resistance.

The main hurdle could be near 1.1820. A close above 1.1820 could open the doors for a fresh increase. If not, EUR/USD could decline again. On the downside, there is key support at 1.1710 and the 200 simple moving average (green, 4-hour).

The next area of interest might be 1.1665. The main support could be 1.1650. Any more losses might increase selling pressure and send the pair toward 1.1580.

Looking at GBP/USD, the pair attempted to recover, but the bears are still active below the 1.3525 resistance level.

Upcoming Key Economic Events:

  • ECB's President Lagarde speech.
  • BoE's Governor Bailey speech.
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