EUR/USD Started Strong Recovery, Dollar Takes Hit
- EUR/USD started a steady increase above the 1.0200 resistance.
- It broke many hurdles near 1.0100 and 1.0200 on the 4-hours chart.
- USD/JPY declined heavily below the 142.50 support zone.
- Gold price rallied above the $1,750 resistance zone.
EUR/USD Technical Analysis
The Euro formed a base above the 0.9740 level against the US Dollar. EUR/USD remained well bid and started a strong increase above the 0.9920 resistance.
Looking at the 4-hours chart, the pair gained bullish momentum after the US CPI release. There was a strong upward move above the 1.0000 and 1.0080 levels. The pair even settled above the 1.0150 resistance level, the 100 simple moving average (red, 4-hours) plus the 200 simple moving average (green, 4-hours).
The US Dollar saw a strong bearish wave, resulting in a drop in USD/JPY and rise in GBP/USD and gold. EUR/USD was finally able to clear the 1.0250 barrier.
It is now consolidating gains, with an immediate resistance near 1.0380 level. The next major resistance may perhaps be near 1.0420. Any more gains could set the pace for a move towards the 1.0500 level, above which it could even test 1.0650.
An initial support is near the 1.0265 level. The next major support is near the 1.0220 zone. The main support sits at 1.0120. A close below the 1.0120 level might start another strong decline. In the stated case, EUR/USD could decline towards the 1.0000 support.
Looking at gold price, there was a strong upward move above the $1,750 level and it seems like the price might even climb above the $1,770 level.
- Euro Zone Industrial Production for Sep 2022 (MoM) - Forecast +0.3%, versus +1.5% previous.