Key Highlights
- EUR/USD started a fresh increase from the 1.0835 support.
- It broke a major bearish trend line with resistance near 1.0890 on the 4-hour chart.
- GBP/USD also started a fresh increase and climbed above 1.2780.
- Crude oil prices are rising above the key $72.50 resistance.
EUR/USD Technical Analysis
The Euro found support near the 1.0835 zone against the US Dollar. EUR/USD remained stable and started a fresh increase above the 1.0865 resistance.
Looking at the 4-hour chart, the pair broke a major bearish trend line with resistance near 1.0890. The pair settled above the 1.0920 resistance, the 200 simple moving average (green, 4 hours), and the 100 simple moving average (red, 4 hours).
There was a clear move above the 61.8% Fib retracement level of the downward move from the 1.1012 swing high to the 1.0835 low.
It is now facing resistance near the 1.1000 level. The next major resistance is near 1.1020. If there is a move above the 1.1020 resistance, the pair could rise toward 1.1080. Any more gains might send the pair toward the 1.1120 level.
Immediate support is near the 1.0920 zone or the 100 simple moving average (red, 4 hours). The next major support is near the 1.0880 level.
If there is a downside break below the 1.0880 support, the pair could decline toward the 1.0850 level. The main support is still near 1.0835.
Looking at GBP/USD, the pair started a strong increase and was able to clear a major hurdle near the 1.2780 level.
Economic Releases
- US Wholesale Inventories for May 2023 – Forecast +0.1%, versus -0.1% previous.
