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EUR/USD Turns Red Below 1.1520, Upsides Limited

Aayush Jindal

Aayush Jindal

Key Highlights

  • EUR/USD extended decline below 1.1520 and 1.1500.
  • A major bearish trend line is forming with resistance near 1.1525 on the 4-hours chart.
  • GBP/USD also extended decline below the key 1.3500 support.
  • Gold price rallied above the $1,835 and $1,850 resistance levels.

 

EUR/USD Technical Analysis

The Euro failed to stay above the key 1.1520 support level against the US Dollar. EUR/USD broke the 1.1500 support zone to enter the red zone.

Looking at the 4-hours chart, the pair settled below the 1.1520 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).

There was a clear break below the 1.1450 level and the pair traded as low as 1.1431. It is now consolidating losses above the 1.1440 level. An immediate resistance is near the 1.1480 level. It is near the 23.6% Fib retracement level of the recent decline from the 1.1605 swing high to 1.1431 low.

The next major resistance is near the 1.1510 level. The main resistance is forming near 1.1520 and a bearish trend line. It is close to the 50% Fib retracement level of the recent decline from the 1.1605 swing high to 1.1431 low.

A clear break above the 1.1510 and 1.1520 resistance levels could open the doors for a steady increase. The next key resistance could be 1.1565.

An immediate support is near the 1.1440 level. The main breakdown support is near the 1.1435 level, below which there is a risk of a sharp decline. The next major support is near the 1.1250 level.

Looking at GBP/USD, the pair extended decline and traded below the key 1.3500 support. On the other hand, USD/CAD and USD/JPY remained well bid for more upsides.

Economic Releases

  • Euro Zone Trade Balance for Sep 2021 – Forecast €11.2B versus €11.1B previous.