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Aayush Jindal

Key Highlights

  • EUR/USD failed again to clear the 1.1010 resistance.
  • A key bullish trend line is forming with support near 1.0860 on the 4-hour chart.
  • GBP/USD also started a downside correction from the 1.2780 zone.
  • Gold prices are struggling to stay above the $2,000 pivot level.

EUR/USD Technical Analysis

The Euro gained bullish momentum after the Fed interest rate decision. EUR/USD broke the 1.0920 resistance to move again into a positive zone.

Looking at the 4-hour chart, the pair even climbed above the 1.0950 level. There was a close above the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).

However, the bears were once again active near the 1.1010 resistance. A high was formed near 1.1009 and the pair started a fresh decline. There was a move below the 1.0950 level. The pair declined below the 38.2% Fib retracement level of the upward move from the 1.0723 swing low to the 1.1009 high.

On the downside, there is a key bullish trend line forming with support near 1.0860 on the same chart. It is close to the 100 SMA and the 50% Fib retracement level of the upward move from the 1.0723 swing low to the 1.1009 high.

The next major support is 1.0820, below which the bears might aim for 1.0740. On the upside, immediate resistance is near the 1.0940 level. The next key resistance is near the 1.0965 level.

The main resistance is near 1.1010. A close above the 1.1010 zone could open the doors for more upsides. The next stop for the bulls might be 1.1120.

Looking at GBP/USD, the pair struggled near the 1.2780 resistance and recently started a downside correction.

Economic Releases

  • German IFO Business Climate Index for Dec 2023 – Forecast 87.8, versus 87.3 previous.
  • German IFO Current Assessment Index for Dec 2023 - Forecast 89.5, versus 89.4 previous.