EUR/USD: Recovery Could Be Limited Above 1.1650
- EUR/USD extended its decline below the 1.1600 region.
- Two bearish trend lines are forming with resistance near 1.1650 and 1.1680 on the 4-hours chart.
- GBP/USD corrected higher after it traded close to 1.3400.
- Crude oil price remains elevated above $74.00, and gold price climbed above $1,750.
EUR/USD Technical Analysis
The Euro remained in a bearish zone below the 1.1750 level against the US Dollar. EUR/USD broke the 1.1650 and 1.1620 support levels to move further into a negative zone.
Looking at the 4-hours chart, there was also a break below the 1.1600 region. The pair settled below the 1.1650 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
It traded as low as 1.1562 and it is now consolidating losses. An initial hurdle on the upside is near the 1.1620 level. The first key resistance is near the 1.1650 level.
There are also two bearish trend lines forming with resistance near 1.1650 and 1.1680 on the same chart. An intermediate resistance could be near the 50% Fib retracement level of the downward move from the 1.1755 swing high to 1.1562 low.
The main resistance is now forming near the 1.1680 and 1.1700 levels. An initial support on the downside is near the 1.1565 level.
The next key support is near 1.1550, below which the pair may possibly continue lower. In the stated case, the price could test the 1.1420 level.
Looking at GBP/USD, the pair extended its decline below the 1.3450 level before it started an upside correction. Besides, USD/JPY corrected lower from 112.00, but it might find bids near 110.50.
- US Factory Orders for August 2021 (MoM) - Forecast +0.9%, versus +0.4% previous.