Key Highlights
- EUR/USD climbed towards 1.2250 before correcting lower.
- A major bullish trend line is forming with support near 1.2140 on the 4-hours chart.
- GBP/USD spiked above 1.4200, but it is showing signs of a downside correction.
- Gold price remains elevated above $1,850 and it could rally further above $1,900.
EUR/USD Technical Analysis
This past week, the Euro gained pace above the 1.2150 resistance against the US Dollar. EUR/USD even traded above 1.2200 before it started a downside correction.
Looking at the 4-hours chart, the pair traded as high as 1.2245 before starting a downside correction. There was a break above the 1.2200 level, but the pair is trading well above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
On the downside, there is a major support forming near the 1.2140 level. There is also a major bullish trend line forming with support near 1.2140 on the same chart.
The trend line is close to the 50% Fib retracement level of the upward move from the 1.2053 swing low to 1.2245 high. The next major support on the downside is near the 1.2115 level and the 100 SMA.
Any more losses could possibly lead the pair towards the 1.2050 support zone. On the upside, the pair is facing hurdles near 1.2225 and 1.2250. A clear break above the 1.2250 zone is likely to clear the path for a move towards the 1.2320 level.
Looking at GBP/USD, the pair spiked above the 1.4200 level and it is now showing signs of a downside correction towards the 1.4050 level.
Economic Releases
- Chicago Fed National Activity Index for April 2021 – Forecast 1.70, versus 1.71 previous.
