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EUR/USD Tests Support—Can It Recover And Resume Upside?

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Aayush Jindal

Key Highlights

  • EUR/USD corrected gains and tested the 1.1665 support.
  • A bullish trend line is forming with support at 1.1690 on the 4-hour chart.
  • GBP/USD could continue to move higher toward the 1.3620 resistance.
  • Gold prices are stuck in a range below the $4,800 resistance.

EUR/USD Technical Analysis

The Euro started a downside correction from 1.1850 against the US Dollar. EUR/USD tested the 1.1665 zone and might start a fresh increase.

Looking at the 4-hour chart, the pair is still above the 1.1665 pivot level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Besides, there is a bullish trend line forming with support at 1.1690.

On the upside, the pair faces resistance at 1.1760 or the 50% Fib retracement level of the downward move from the 1.1849 swing high to the 1.1669 low.

The first major resistance sits at 1.1800. The main resistance could be 1.1850. A close above 1.1850 could open doors for gains above 1.1920. In the stated case, the bulls could aim for a move to 1.2000.

Immediate support is seen near 1.1690, the 100 simple moving average (red, 4-hour), and the trend line. The next support could be 1.1620 and the 200 simple moving average (green, 4-hour). A close below 1.1620 might push the pair toward 1.1550. Any more losses could initiate a fresh move to 1.1420 in the coming days.

Looking at GBP/USD, the pair is again moving higher and the bulls could aim for a move above the 1.3600 level.

Upcoming Key Economic Events:

  • ECB's Schnabel speech.
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