Aayush Jindal
Key Highlights
- EUR/USD declined further below 1.1600 and tested 1.1545.
- A major bearish trend line is forming with resistance at 1.1700 on the 4-hour chart.
- GBP/USD extended losses below 1.3400 and 1.3360.
- Gold is consolidating gains above the $4,000 pivot level.
EUR/USD Technical Analysis
The Euro started a major decline below 1.1650 against the US Dollar. EUR/USD dropped below the 1.1650 and 1.1600 levels to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). The pair even tested the 1.1545 zone and recently started a recovery wave.
The pair climbed above the 1.1620 level and the 23.6% Fib retracement level of the recent decline from the 1.1728 swing high to the 1.1542 low. On the upside, the pair faces resistance near the 1.1660 level.
The main hurdle could be 1.1690 and the 61.8% Fib retracement level of the recent decline from the 1.1728 swing high to the 1.1542 low. There is also a major bearish trend line forming with resistance at 1.1700 on the same chart.
On the downside, the pair might find support at 1.1580. The main hurdle could be 1.1550. A close above 1.1550 could start a steady increase to 1.1500.
Looking at GBP/USD, the pair faced an increase in selling pressure, resulting in a drop below the 1.3400 support zone.
Upcoming Key Economic Events:
- Fed's Paulson speech.
- Monthly Budget Statement (Sep).
