Here’s Why EUR/USD Could Start Fresh Increase
- EUR/USD corrected lower from the 1.1180 resistance zone.
- A major rising channel is forming with support near 1.1000 on the 4-hours chart.
- GBP/USD is struggling to clear the 1.3150 resistance zone.
- Crude oil price is consolidating near the $100 pivot level.
EUR/USD Technical Analysis
The Euro attempted an upside break above the 1.1150 resistance against the US Dollar. However, EUR/USD struggled near 1.1180 and corrected lower.
Looking at the 4-hours chart, the pair declined below the 1.1150 and 1.1120 support levels. There was a clear move below the 50% Fib retracement level of the upward move from the 1.0943 swing low to 1.1184 high.
The pair even traded below 1.1080 level and the 200 simple moving average (green, 4-hours). It is now trading near the 1.1040 level and the 100 simple moving average (red, 4-hours).
EUR/USD is testing the 61.8% Fib retracement level of the upward move from the 1.0943 swing low to 1.1184 high. Besides, there is a major rising channel forming with support near 1.1000 on the same chart.
A downside break below the channel support might call for a sharp decline. The next major support sits near the 1.0950 level, below which the pair could revisit 1.0820.
On the upside, an immediate resistance is near the 1.1080 level and the 200 simple moving average (green, 4-hours). The main resistance sits near the 1.1150. A clear move above the 1.1150 zone could set the pace for a move towards 1.1220.
Looking at GBP/USD, the pair is now struggling below the 1.3150 and 1.3200 resistance levels. On the downside, the 1.3000 support holds the key.
- Euro Zone Sentix Investor Confidence for April 2022 - Forecast -9.7, versus -7.0 previous.