Key Highlights
- EUR/USD started an upside correction above the 1.0720 resistance.
- A key rising channel is forming with support near 1.0710 on the 4-hour chart.
- GBP/USD is consolidating gains near the 1.2550 zone.
- USD/JPY is holding gains above the 138.50 support.
EUR/USD Technical Analysis
The Euro started an upside correction from the 1.0640 zone against the US Dollar. EUR/USD was able to clear the 1.0720 resistance to start a recovery wave.
Looking at the 4-hour chart, the pair was able to climb above the 1.0750 resistance and the 100 simple moving average (red, 4 hours). However, the bears were active near the 1.0785 zone. A high is formed near 1.0787 and the pair is now moving lower.
Immediate support is near the 1.0715 level. The next major support is near the 1.0710 level. There is also a key rising channel forming with support near 1.0710 on the same chart.
If there is a downside break below the 1.0710 support, the pair could decline toward the 1.0640 support. Any more losses might send EUR/USD toward 1.0600.
If there is a fresh increase, the pair could face resistance near 1.0780. The first major resistance is near the 1.0820 level. If there is a move above the 1.0820 resistance, the pair could drift toward 1.0880.
Looking at GBP/USD, the pair is showing a lot of positive signs but there might be a downside correction toward the 1.2500 level.
Economic Releases
- US Monthly Budget Statement for May 2023.
