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EUR/USD Reclaims 1.1400, Oil Price Extends Rally

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Aayush Jindal

Key Highlights

  • EUR/USD started a fresh increase above the 1.1400 resistance.
  • It broke a key bearish trend line with resistance near 1.1235 on the 4-hours chart.
  • GBP/USD also recovered above 1.3550 and tested 1.3620.
  • Crude oil price extended rally and traded to a new multi-year high above $91.00.

EUR/USD Technical Analysis

The Euro formed a base above the 1.1120 level against the US Dollar. EUR/USD started a fresh increase after it cleared the 1.1250 and 1.1320 resistance levels.

Looking at the 4-hours chart, the pair gained strength after there was a close above the 1.1350 level and the 100 simple moving average (red, 4-hours). It even settled above the 1.1400 level and the 200 simple moving average (green, 4-hours).

It traded as high as 1.1483 and currently correcting lower. An initial support is near the 1.1400 level. It is near the 23.6% Fib retracement level of the upward move from the 1.1121 low.

The next major support is near the 1.1300 level and the 100 simple moving average (red, 4-hours). It is close to the 50% Fib retracement level of the upward move from the 1.1121 low. Any more downsides might put pressure on the bulls.

On the upside, an immediate resistance is near the 1.1450 level. The first major resistance is near the 1.1480 zone. A clear move above the 1.1480 level might start a major increase in the coming sessions.

Looking at GBP/USD, the pair gained bullish momentum for a move above 1.3550. Moreover, crude oil price surged further above $91.00 and traded to a new multi-year high.

Economic Releases

  • Euro Zone Sentix Investor Confidence for Feb 2022 - Forecast 15.2, versus 14.9 previous.
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