Key Highlights
- EUR/USD extended decline below the 1.0820 support.
- A key bearish trend line is forming with resistance near 1.0915 on the 4-hours chart.
- GBP/USD could accelerate lower if it settles below 1.3000.
- USD/JPY traded to a new multi-year high above 126.00.
EUR/USD Technical Analysis
The Euro started a major decline from well above the 1.0850 level against the US Dollar. EUR/USD declined below the 1.0800 support level to move into a bearish zone.
Looking at the 4-hours chart, the pair attempted a recovery wave from the 1.0756 low. However, it stayed below the 1.0850 pivot level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
It is now consolidating near the 1.0800 level. An initial support on the downside is near the 1.0780 level. The next major support is near the 1.0750 level. A downside break below the 1.0750 support level might accelerate losses.
The next major support is near the 1.0680 level. If there is an upside correction, the pair might face resistance near the 1.0840 level.
The next major resistance is near the 1.0860 level, above which it could rise towards the 1.0900. There is also a key bearish trend line forming with resistance near 1.0915 on the same chart. A clear move above the trend line could push EUR/USD towards the 1.0950 resistance.
Looking at GBP/USD, the pair failed to recover above the 1.3150 resistance zone and started a fresh decline towards the 1.3000 level.
Economic Releases
- NAHB Housing Price Index for April 2022 – Forecast 77, versus 79 previous.
