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EUR/USD Starts Fresh Drop, Gold Rallies

Key Highlights

  • EUR/USD started a fresh decline from the 1.0780 resistance zone.
  • It broke a key bullish trend line with support near 1.0655 on the 4-hours chart.
  • GBP/USD declined sharply after it failed to surpass 1.2660.
  • The UK GDP could increase 0.2% in April 2022 (MoM).

 

EUR/USD Technical Analysis

The Euro attempted a clear upside break above the 1.0800 resistance against the US Dollar. EUR/USD struggled and started a fresh decline below the 1.0700 support.

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

The pair traded below the 50% Fib retracement level of the upward move from the 1.0349 swing low to 1.0789 high. Besides, there was a break below a key bullish trend line with support near 1.0655 on the same chart.

EUR/USD even tested the 61.8% Fib retracement level of the upward move from the 1.0349 swing low to 1.0789 high. The first key support is near the 1.0480 level.

The next major support is near the 1.0450 level. Any more losses might send the pair towards the 1.0400 support. On the upside, an immediate resistance is near the 1.0580 level.

The next major barrier could be near the 1.0620 level and the 200 simple moving average (green, 4-hours). Any more gains might call for a test of 1.0700.

Looking at GBP/USD, the pair kept struggling below the 1.2660 resistance and now gaining bearish momentum.

Economic Releases

  • UK Industrial Production for April 2022 (MoM) - Forecast +0.2%, versus -0.2% previous.
  • UK Manufacturing Production for April 2022 (MoM) - Forecast +0.2%, versus -0.2% previous.
  • UK GDP for April 2022 (MoM) - Forecast +0.2%, versus -0.1% previous.