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EUR/USD Recovery Attempt Could Face Hurdles

Key Highlights

  • EUR/USD traded as low as 1.0612 and is currently correcting losses.
  • A key bearish trend line is forming with resistance near 1.0685 on the 4-hours chart.
  • GBP/USD is struggling below the 1.2120 resistance zone.
  • Gold price is attempting an upside break above the $1,840 resistance.


EUR/USD Technical Analysis

The Euro remained in a bearish zone below 1.0800 against the US Dollar. EUR/USD extended its decline below the 1.0700 level to move further into a bearish zone.

Looking at the 4-hours chart, the pair settled below the 1.0700 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

There was a clear move below the 1.0650 support zone. The pair traded as low as 1.0612 and is currently correcting losses. There was a minor increase above the 1.0640 and 1.0650 resistance levels.

However, the pair is now facing resistance near the 1.0685 level. There is also a key bearish trend line forming with resistance near 1.0685 on the same chart. The next major resistance is near the 1.0720 level.

A clear move above the 1.0720 resistance might start a steady increase towards the 1.0780 resistance zone. Any more gains could open the doors for a move towards the 1.0800 level, above which the bulls may perhaps aim a move towards the 1.0880 resistance.

On the downside, an immediate support is near the 1.0620 level. The next major support is near the 1.0600 level, below which there is a risk of a move towards the 1.0550.

Looking at GBP/USD, the pair is also trading in a similar fashion and might face a strong resistance near the 1.2120 and 1.2150 levels.

Economic Releases

  • Euro Zone Consumer Confidence for Feb 2023 (Preliminary) – Forecast -18.3, versus -20.9 previous.