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EUR/USD Upside Stalls, Resistance Zone Blocks Further Recovery

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Aayush Jindal

Key Highlights

  • EUR/USD started a recovery wave from the 1.1410 level.
  • It traded above a key bearish trend line with resistance at 1.1510 on the 4-hour chart.
  • GBP/USD failed to clear the 1.3450 resistance zone and trimmed gains.
  • Gold prices declined heavily below $5,000 and $4,800.

EUR/USD Technical Analysis

The Euro found support near 1.1410 and started a recovery wave against the US Dollar. EUR/USD climbed above 1.1500 before it faced resistance.

Looking at the 4-hour chart, the pair traded above a key bearish trend line with resistance at 1.1510. The bulls pushed the pair above the 50% Fib retracement level of the downward move from the 1.1667 swing high to the 1.1410 low.

However, the pair faced resistance near 1.1605 and the 100 simple moving average (red, 4-hour). The 76.4% Fib retracement level of the downward move from the 1.1667 swing high to the 1.1410 low also acted as a resistance.

On the upside, the pair is now facing sellers near 1.1600. The first major resistance sits at 1.1620. A close above 1.1620 could open the doors for gains above 1.1640. In the stated case, the bulls could aim for a move to 1.1655.

If there is no upside break above 1.1600, the pair might start a fresh decline. Immediate support is seen near 1.1510. The first key support sits at 1.1450. A close below 1.1450 might call for heavy losses. In the stated case, it could even revisit 1.1410 in the coming days.

Looking at Gold, the price failed to stay above $4,800 and started a sharp decline toward $4,400. The main support sits at $4,200.

Upcoming Key Economic Events:

  • ECB's Cipollone speech.
  • ECB's Lane speech.
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