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EUR/USD Slides Further As Dollar Gains Steadily

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Aayush Jindal

Key Highlights

  • EUR/USD extended its decline below the 1.0600 support.
  • A key bearish trend line is forming with resistance near 1.0580 on the 4-hours chart.
  • GBP/USD could dive if it breaks the 1.1920 support.
  • Gold price is at risk of a move below the $1,800 support.

EUR/USD Technical Analysis

The Euro started another decline after it failed to recover above 1.0800 against the US Dollar. EUR/USD extended its decline below the 1.0700 support zone.

Looking at the 4-hours chart, the pair settled below the 1.0650 support level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The decline gained pace below the 1.0620 and 1.0600 support levels. A low is formed near 1.0536 and the pair is now consolidating losses. On the upside, an immediate resistance is near the 1.0575 level.

There is also a key bearish trend line forming with resistance near 1.0580 on the same chart. The next major resistance is near the 1.0620 level. A clear move above the 1.0620 resistance might start a steady increase.

The next target could be near the 1.0700 level and the 100 simple moving average (red, 4-hours), where the bears might appear. Any more gains could open the doors for a move towards the 1.0800 level.

On the downside, an immediate support is near the 1.0540 level. The next major support is near the 1.0500 level, below which there is a risk of a move towards the 1.0450. Any more losses could open the doors for a drop towards 1.0380.

Looking at GBP/USD, the pair slowly declined below 1.2050 and there is a risk of more losses in the coming days.

Economic Releases

  • Euro Zone Industrial Confidence for Feb 2023 – Forecast 2, versus 1.3 previous
  • Euro Zone Economic Sentiment Indicator for Feb 2023 – Forecast 101, versus 99.9 previous.
  • US Durable Goods Orders for Jan 2023 – Forecast -4% versus +5.6% previous.
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