Key Highlights
- EUR/USD started an upside correction above 1.0180.
- GBP/USD gained pace and broke the 1.2050 resistance.
- Gold price started a fresh increase above the $1,740 resistance.
- The US ISM Manufacturing PMI could decline from 53 to 52 in July 2022.
EUR/USD Technical Analysis
The Euro started a fresh recovery wave above the 1.0050 resistance against the US Dollar. EUR/USD climbed above 1.0120 to move into a positive zone.
Looking at the 4-hours chart, the pair was able to settle above the 1.0150 level and the 100 simple moving average (red, 4-hours). The pair broke the 38.2% Fib retracement level of the key decline from the 1.0614 swing high to 0.9955 low.
It is now facing resistance near the 1.0285 level. It is near the 50% Fib retracement level of the key decline from the 1.0614 swing high to 0.9955 low.
The next major resistance is near the 200 simple moving average (green, 4-hours) at 1.0300, above which the pair could accelerate higher. Conversely, EUR/USD might fail to climb above 1.0285 and react to the downside.
An initial support is near the 1.0185 level. The next major support is 1.0160 and the 100 simple moving average (red, 4-hours), below which the pair could accelerate lower towards 1.0120. Any more losses might send the pair towards the 1.0050 zone.
Looking at GBP/USD, the pair started a strong recovery wave after it was able to settle above the 1.2000 and 1.2050 resistance levels.
Economic Releases
- Germany’s Manufacturing PMI for July 2022 – Forecast 49.2, versus 49.2 previous.
- Euro Zone Manufacturing PMI for July 2022 – Forecast 49.6, versus 49.6 previous.
- UK Manufacturing PMI for July 2022 – Forecast 52.2, versus 52.2 previous.
- US Manufacturing PMI for July 2022 – Forecast 52.3, versus 52.3 previous.
- US ISM Manufacturing PMI for July 2022 – Forecast 52.0, versus 53.0 previous.
