Key Highlights
- EUR/USD extended its decline below the 1.0780 support.
- A major bearish trend line is forming with resistance near 1.0765 on the 4-hour chart.
- USD/JPY pumped above the 140.00 resistance zone.
- Gold price extended its decline below the $1,970 support.
EUR/USD Technical Analysis
The Euro started a fresh decline from well above 1.0800 against the US Dollar. EUR/USD traded below 1.0800 and 1.0780 to move into a bearish zone.
Looking at the 4-hour chart, the pair settled below the 1.0780 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
The decline gained pace below the 1.0750 level and the pair traded close to 1.0700. If the bears remain in action, there is a risk of a move toward the 1.0660 level. The next major support is near the 1.0625 level.
If there is a downside break below the 1.0625 support, the pair could decline toward the 1.0550 support level. The next major support sits near the 1.0500 level.
On the upside, the pair might face resistance near the 1.0750 level. There is also a major bearish trend line forming with resistance near 1.0765 on the same chart. The next major resistance is near 1.0780, above which the pair could rise toward the 1.0820 level.
Looking at USD/JPY, the pair started a major increase and recently was able to clear the key 140.00 resistance zone.
Economic Releases
- Italy Zone Trade Balance for April 2023 – Forecast -€8.42B versus -€8.45B previous.
