Aayush Jindal
Key Highlights
- USD/JPY started a decent increase and reclaimed 158.00.
- A key bullish trend line is forming support at 158.50 on the 4-hour chart.
- EUR/USD extended losses and traded below 1.1620.
- USD/CAD is showing signs of strength above the 1.3750 resistance.
EUR/USD Technical Analysis
The US Dollar remained supported above 156.50 against the Japanese Yen. USD/JPY formed a base and started a fresh increase above 158.00.
Looking at the 4-hour chart, the pair above the 50% Fib retracement level of the downward move from the 160.72 swing high to the 155.03 low. The pair settled above 158.80, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
Besides, there is a key bullish trend line forming support at 158.50. On the upside, the pair faces resistance at 159.40 and the 76.4% Fib retracement level of the downward move from the 160.72 swing high to the 155.03 low.
The first major resistance sits at 160.00. A close above 160.00 could open doors for gains above 160.50. In the stated case, the bulls could aim for a move to 162.00.
If there is another decline, the pair could find bids near 158.50. The first major support sits near the 158.00 level. The next support could be 157.80 and the 100 simple moving average (red, 4-hour). A close below 157.80 might initiate a drop to 156.50. Any more losses might open the doors for a drop toward the 155.00 zone.
Looking at EUR/USD, the pair remained in a negative zone, and the bears could aim for a clear move below the 1.1550 support.
Upcoming Key Economic Events:
- Fed Chair Warsh Swearing-in Ceremony.
- Michigan Consumer Sentiment Index for May 2026 (Prelim) – Forecast 48.2, versus 48.2 previous.
