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EUR/USD Targets Fresh Highs, Oil Price Rallies

Key Highlights

  • EUR/USD started a fresh increase above the 1.0880 resistance.
  • A key bullish trend line is forming with support near 1.0860 on the 4-hour chart.
  • GBP/USD tested the 1.2500 resistance before it corrected lower.
  • Crude oil price rallied and climbed above the $80 resistance.


EUR/USD Technical Analysis

The Euro formed a base above the 1.0800 zone against the US dollar. EUR/USD remained well bid and was able to climb above the 1.0880 resistance zone.

Looking at the 4-hour chart, the pair was able to settle above the 1.0900 resistance, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

Finally, it traded above the 1.0950 resistance but failed to test the 1.1000 resistance. It traded as high as 1.0973 and recently started a downside correction. There was a move below the 1.0950 and 1.0920 levels.

On the downside, immediate support is near the 1.0880 level. The next major support is near the 1.0860 level. There is also a key bullish trend line forming with support near 1.0860 on the same chart, below which the pair might test the 1.0820 zone.

On the upside, the pair is now facing resistance near the 1.0950 level. The next key resistance is near the 1.0975 zone. A clear move above the 1.0975 resistance might send the pair toward the 1.1000 zone. Any more gains might send the pair toward 1.1120.

Looking at crude oil price, there was a decent rally above the $78 resistance and the price even climbed above the $80 pivot level.

Economic Releases

  • US Wholesale Inventories for Feb 2023 – Forecast +0.2%, versus +0.2% previous.