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EUR/USD Struggles Below 1.0600, Oil Price Dips

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD is struggling to clear 1.0560 and 1.0600.
  • It broke a major bullish trend line at 1.0680 on the 4-hours chart.
  • GBP/USD is showing bearish signs below the 1.2500 pivot zone.
  • Crude oil price corrected lower and traded below $113.80.

 

EUR/USD Technical Analysis

The Euro failed to continue higher above the 1.0780 resistance against the US Dollar. EUR/USD started a fresh decline and traded below the 1.0620 support zone.

Looking at the 4-hours chart, there was a break below a major bullish trend line at 1.0680. It opened the doors for a move below the 1.0600 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

There was a sharp decline below the 1.0500 level before the bulls appeared near 1.0360. Recently, there was an upside correction above the 1.0450 level.

However, the EUR/USD pair struggled to continue higher above the 1.0600 resistance and the 200 simple moving average (green, 4-hours). It is now showing a few bearish signs below the 1.0580 level.

The first major support on the downside is near the 1.0450 level. The next major support is near the 1.0420 level. Any more losses might call for a test of the 1.0360 support or the.

On the upside, an immediate resistance is near the 1.0550 level. The next major barrier could be near the 1.0600 level. A clear move above the 1.0600 level might push the pair towards the 1.0650 level in the near term.

Looking at GBP/USD, the pair attempted an upside correction above the 1.2350 level but the bears were active below the 1.2500 resistance zone.

Economic Releases

  • Euro Zone Construction Output for April 2022 – Forecast 0.1%, versus 0% previous.