Key Highlights
- EUR/USD extended decline below the 1.1120 support zone.
- A key bearish trend line is forming with resistance near 1.1180 on the 4-hours chart.
- Gold is eyeing upside break to $2,000, and oil price broke the $125.00 resistance.
- GBP/USD traded below the key 1.3280 support zone.
EUR/USD Technical Analysis
The Euro started a major decline after it failed to surpass 1.1300 against the US Dollar. EUR/USD gained bearish momentum after it broke the 1.1120 support zone.
Looking at the 4-hours chart, the pair settled below the 1.110 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
There was a clear move below the 1.1050 support zone. It even spiked below the 1.1000 level and is showing a few bearish signs. If there is a recovery wave, the pair could face resistance near the 1.100 level.
The next major resistance is near the 1.1060 level. To start a decent recovery wave, EUR/USD must clear the 1.1060 and 1.1080 resistance levels.
If not, the pair might continue to move down below the 1.0880 support zone. The next key support is near 1.0820 level, below which there is a risk of a move towards the 1.0750 level.
Looking at GBP/USD, the pair extended decline below the 1.3280 and 1.3250 levels. Conversely, gold and oil prices rallied above major hurdles near $1,950 and $125.00.
Economic Releases
- German Retail Sales for Jan 2022 (MoM) – Forecast +1.5, versus -5.5% previous.
- German Retail Sales for Jan 2022 (YoY) – Forecast 9.5%, versus 0% previous.
- German Factory Orders for Jan 2022 (MoM) – Forecast +1.0%, versus +2.8% previous.
