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EUR/USD Revisits Support, Can Bulls Save The Day?

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Aayush Jindal

Key Highlights

  • EUR/USD declined below the 1.0950 and 1.0920 support levels.
  • A key bearish trend line is forming with resistance near 1.0925 on the 4-hour chart.
  • GBP/USD also reacted to the downside toward the 1.2450 support.
  • USD/JPY is moving higher and might climb toward the 137.50 resistance.

EUR/USD Technical Analysis

The Euro faced a strong rejection near the 1.1090 level against the US Dollar. The EUR/USD pair started a fresh decline and traded below the 1.1000 support.

Looking at the 4-hour chart, the pair settled below the 1.0950 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

The bears even pushed the pair below the 1.0920 level. It tested the 1.0840 support zone and is currently consolidating losses. Immediate resistance on the upside is near the 1.0900 level.

There is also a key bearish trend line forming with resistance near 1.0925 on the same chart. The next major resistance is near the 1.0950 level or the 200 simple moving average (green, 4 hours), above which the pair could test the 100 simple moving average (red, 4 hours).

On the downside, the pair might find bids near 1.0840. The next major support is near the 1.0820 level. If there is a downside break below the 1.0820 level, the pair could test the 1.0750 level.

Looking at GBP/USD, the pair failed to climb above the 1.2680 resistance and started a downside correction toward the 1.2450 support.

Economic Releases

  • Euro Zone Industrial Production for March 2023 (MoM) - Forecast -1.8%, versus +1.5% previous.
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