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EUR/USD Recovery Faces Many Challenges

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD started an upside correction from the 1.0800 support zone.
  • A key bearish trend line is forming with resistance near 1.1120 on the 4-hours chart.
  • GBP/USD could attempt a strong increase above the 1.3200 resistance.
  • Gold price is correcting gains and might decline below $1,900.

 

EUR/USD Technical Analysis

The Euro found support near the 1.0800 zone against the US Dollar. EUR/USD started an upside correction and traded above the 1.0950 resistance zone.

Looking at the 4-hours chart, the pair was able to clear the 1.1000 resistance zone. The bulls were able to push the price above the 1.1050 resistance. There was also a move above the 23.6% Fib retracement level of the key decline from the 1.1390 swing high to 1.0805 swing low.

Finally, there was a spike above the 1.1100 level and the 100 simple moving average (red, 4-hours). However, there was no clear move above the 50% Fib retracement level of the key decline from the 1.1390 swing high to 1.0805 swing low.

There is also a key bearish trend line forming with resistance near 1.1120 on the same chart. The next major resistance is near the 1.1200 level and the 200 simple moving average (green, 4-hours).

A clear move above the 1.1200 resistance zone could open the doors for a move towards the 1.1280 and 1.1320 levels.

Conversely, EUR/USD might start a fresh decline below the 1.1000 support zone. The next major support is near the 1.0920 level.

Looking at GBP/USD, the pair might soon attempt to gain pace above 1.3200 and 1.3220. Besides, gold price is slowly moving lower towards the $1,880 support zone.

Economic Releases

  • Chicago Fed National Activity Index for Feb 2022 – Forecast 0.29, versus 0.69 previous.