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EUR/USD Poised for Additional Gains, Oil Price Takes Hit

Key Highlights

  • EUR/USD could rise further above the 1.0585 resistance zone.
  • A key bullish trend line is forming with support near 1.0485 on the 4-hours chart.
  • GBP/USD aims an upside break above the 1.2350 resistance zone.
  • Crude oil price extended its decline below the $73.50 support.


EUR/USD Technical Analysis

The Euro started a steady increase above 1.0420 against the US Dollar. EUR/USD even traded above the 1.0500 to move into a positive zone.

Looking at the 4-hours chart, the pair gained pace above the 1.0520 level. The pair even settled above the 1.0450 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

It traded as high as 1.0586 before the bears appeared. The pair is now consolidating gains above the 1.0500 level. An initial support is near the 1.0500 level. The next major support is near the 1.0480 zone.

There is also a key bullish trend line forming with support near 1.0485 on the same chart. Any more losses might send the pair towards the 1.0400 support zone and the 100 simple moving average (red, 4-hours).

On the upside, the pair is facing resistance near the 1.0550. The next major resistance may perhaps be near 1.0585. A clear move above the 1.0585 resistance might start another decent increase.

In the stated case, EUR/USD may perhaps test 1.0650. Any more gains could set the pace for a move towards the 1.0700 resistance zone.

Looking at crude oil price, there was a clear move below the $73.50 support and now there is a risk of more losses in the near term.

Economic Releases

  • UK Industrial Production for Oct 2022 (MoM) - Forecast -0.3%, versus +0.2% previous.
  • UK Manufacturing Production for Oct 2022 (MoM) - Forecast -0.1%, versus 0% previous.