(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 Won’t Be Easy, Gold Dives

Key Highlights

  • EUR/USD traded sharply lower below the 1.0250 support.
  • A key bearish trend line is forming with resistance near 1.0280 on the 4-hours chart.
  • GBP/USD found support near 1.1880 and recovered above 1.2000.
  • Gold price declined below the $1,750 support zone.


EUR/USD Technical Analysis

The Euro started a major decline from the 1.0620 zone against the US Dollar. EUR/USD declined heavily below the 1.0420 support to move into a bearish zone.

Looking at the 4-hours chart, the pair gained pace below the 1.0350 level, the 100 simple moving average (red, 4-hours). It is also well above the 200 simple moving average (green, 4-hours).

The bears even pushed the pair below the 1.0250 support zone. A low was formed near 1.0071 and the pair started a minor upside correction. It tested the 23.6% Fib retracement level of the downward move from the 1.0614 swing high to 1.0071 low.

On the upside, the pair is facing resistance near the 1.0250 zone. There is also a key bearish trend line forming with resistance near 1.0280 on the same chart.

A clear move above the trend line might call for a test of the 50% Fib retracement level of the downward move from the 1.0614 swing high to 1.0071 low at 1.0345. Any more gains may perhaps open the doors for a move towards the 1.0450 resistance.

If there is no recovery wave above the 1.0250 resistance, the pair might resume its decline. The main support sits near the 1.0050 level. A downside break below the 1.0050 support could send the pair further lower.

Looking at GBP/USD, the pair traded as low as 1.1875 and recently started an upside correction above the 1.1950 level.

Economic Releases

  • UK BRC Like-for-Like Retail Sales for June 2022 (YoY) - Forecast -1.2%, versus -1.5% previous.