(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

EUR/USD Recovery Stumbles At Resistance, Leaving Bulls On Alert

Article background

Aayush Jindal

Key Highlights

  • EUR/USD started a recovery wave and climbed to test 1.1450.
  • A rising channel or a possible bearish pennant is forming with resistance at 1.1500 on the 4-hour chart.
  • GBP/USD recovered and tested the 1.3450 resistance.
  • WTI Crude Oil prices struggled to stay above $75.00 and trimmed gains.

EUR/USD Technical Analysis

The Euro recovered some losses and climbed above 1.1420 against the US Dollar. However, EUR/USD seems to be facing hurdles near 1.1475 and 1.1500.

Looking at the 4-hour chart, the pair failed to clear the 50% Fibonacci retracement level of the downward move from the 1.1622 swing high to the 1.1324 low. It also struggled to settle above the 100 simple moving average (red, 4-hour) and remained well below the 200 simple moving average (green, 4-hour).

If there is a fresh decline, the pair might find support near 1.1380. The first major support could be near 1.1350. A downside break and close below 1.1350 might send the pair toward 1.1325. Any more losses could open the doors for a test of 1.1280.

On the upside, the bears might remain active near 1.1475. The next major resistance might be 1.1500. There is also a rising channel or a possible bearish pennant forming with resistance at 1.1500.

A close above the channel resistance could decrease selling pressure. In the stated case, the bulls could aim for a move to 1.1580.

Looking at GBP/USD, the pair recovered some losses, tested the 1.3450 resistance, and now shows some signs of consolidation.

Upcoming Key Economic Events:

  • Fed's Waller speech.
  • ECB's Schnabel speech.
  • Monthly Budget Statement (Jun).
Excellent
Google Reviews
Open a Live accountOpen a Demo account
Loading