Key Highlights
- EUR/USD is holding gains above the 1.0920 support.
- A key bullish trend line is forming with support near 1.0965 on the 4-hour chart.
- GBP/USD is also trading in a positive zone above 1.2380.
- USD/JPY tested the 133.60 support and started a consolidation phase.
EUR/USD Technical Analysis
The Euro started a downside correction from the 1.1075 zone against the US Dollar. EUR/USD declined below 1.1020 but the bulls were active near the 1.0920 zone.
Looking at the 4-hour chart, the pair traded as low as 1.0909 and recently started a fresh upward move. The pair is now trading well above the 1.0940 level, the 200 simple moving average (green, 4 hours), and the 100 simple moving average (red, 4 hours).
It is testing the 1.1000 resistance zone and the 50% Fib retracement level of the downward move from the 1.1075 swing high to the 1.0909 low.
A clear upside break and close above the 1.1000 resistance might send the pair toward 1.1035 or the 76.4% Fib retracement level of the downward move from the 1.1075 swing high to the 1.0909 low.
The next key resistance is near the 1.1075 zone. A clear move above the 1.1075 resistance might send the pair toward the 1.1120 zone. Any more gains might send the pair toward 1.1200.
On the downside, there is a major support forming near 1.0960. There is also a key bullish trend line forming with support near 1.0965 on the same chart. The next major support sits near the 1.0920 level, below which the pair might accelerate lower.
In the stated case, EUR/USD could test the 1.0880 support. Any more losses might send the pair toward the 1.0840 support.
Looking at GBP/USD, the pair is holding gains above the 1.2380 support and might aim for more gains toward the 1.2620 level.
Economic Releases
- German IFO Business Climate Index for April 2023 – Forecast 94.0, versus 93.3 previous.
