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EUR/USD Uptrend Pauses As Buyers Digest Strong Gains

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Aayush Jindal

Key Highlights

  • EUR/USD started a major increase and climbed above 1.1620.
  • A bullish trend line is forming with support near 1.1610 on the 4-hour chart.
  • Bitcoin and Ethereum rallied over 20% before they started a consolidation phase.
  • USD/JPY might start a fresh increase if it settles above 159.60.

EUR/USD Technical Analysis

The Euro found support near 1.1520 against the US Dollar. EUR/USD started another increase above the 1.1580 resistance zone.

Looking at the 4-hour chart, the pair settled above 1.1600, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair climbed above 1.1700 and traded as high as 1.1711 on TitanFX before it started a consolidation phase.

If there is a downside correction, the pair might find bids near 1.1635. The first major support could be near 1.1610 and the 50% Fib retracement level of the upward move from the 1.1511 swing low to the 1.1711 high.

There is also a bullish trend line forming with support at 1.1610. The next major support could be near 1.1560 and the 100 simple moving average (red, 4-hour).

The main support might be 1.1500 and the 200 simple moving average (green, 4-hour). A downside break and close below 1.1500 might send the pair toward 1.1420. Any more losses could open the door for a test of 1.1350.

On the upside, the pair is now facing a major hurdle at 1.1700. The next major resistance might be 1.1725. A close above 1.1725 could start another steady increase. In the stated case, the bulls could aim for a move to 1.1800. Any further gains might open the door for a test of 1.1880.

Looking at Bitcoin, the price rallied over 20%, tested the $80,000 resistance zone, and might start a downside correction.

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