Key Highlights
- EUR/USD started a fresh increase, but it struggled to surpass 1.2200.
- A key contracting triangle is forming with support near 1.2100 on the 4-hours chart.
- GBP/USD seems to be consolidating gains above the 1.4000 support.
- Gold price extended its upward move above the $1,845 resistance zone.
EUR/USD Technical Analysis
After forming a base above the 1.2000, the Euro started a fresh increase against the US Dollar. EUR/USD broke the 1.2100 resistance, but it failed to surpass 1.2200.
Looking at the 4-hours chart, the pair topped near the 1.2180 level. Recently, there was a downside correction below the 1.2100 level, but the pair remained well supported near the 1.2050 level.
It also found support near the 100 simple moving average (red, 4-hours) and it remained well above the 200 simple moving average (green, 4-hours). A low was formed near 1.2051 and the pair is now trading above 1.2100.
It is now trading above the 50% Fib retracement level of the downward move from the 1.2181 high to 1.2051 low. An immediate resistance is near the 1.2150 level.
It is close to the 76.4% Fib retracement level of the downward move from the 1.2181 high to 1.2051 low. The first major resistance on the upside is near the 1.2180 level. The main resistance sits near the 1.2200 level. A clear break above 1.2200 could open the doors for a fresh rally.
On the downside, an initial support is near the 1.210 level. There is also a key contracting triangle forming with support near 1.2100 on the same chart. Any more losses might call for a test of the 1.2000 support zone.
Looking at GBP/USD, the pair tested the 1.4000 support zone and it is currently facing resistance near the 1.4120 level.
Economic Releases
- NY Empire State Manufacturing Index for May 2021 – Forecast 24.0, versus 26.3 previous.
- NAHB Housing Market Index for May 2021 – Forecast 83, versus 83 previous.
