Key Highlights
- EUR/USD started a downside correction from the 1.1275 zone.
- It broke a key bullish trend line with support near 1.1160 on the 4-hour chart.
- GBP/USD is also correcting lower below the 1.3000 support.
- Crude oil prices climbed higher above the $75.50 resistance level.
EUR/USD Technical Analysis
The Euro attempted a clear move above the 1.1250 level against the US Dollar. EUR/USD failed near 1.1275 and recently started a downside correction.
Looking at the 4-hour chart, the pair declined below the 1.1200 support level. There was a move below the 23.6% Fib retracement level of the upward move from the 1.0833 swing low to the 1.1275 high.
Besides, it traded below a key bullish trend line with support near 1.1160 on the same chart. The pair is now approaching the 1.1080 support. The next major support is seen near the 1.1050 level and the 100 simple moving average (red, 4 hours).
The 50% Fib retracement level of the upward move from the 1.0833 swing low to the 1.1275 high is also near 1.1050, below which the pair could test the 200 simple moving average (green, 4 hours).
On the upside, the pair might face resistance near the 1.1170 level. The next resistance is near the 1.1275 level. Any more gains might send the pair toward the 1.1350 level.
Looking at GBP/USD, the pair started a downside correction below the 1.3000 level and might find bids near the 1.2800 zone.
Economic Releases
- Germany’s Manufacturing PMI for July 2023 (Preliminary) – Forecast 41.0, versus 40.6 previous.
- Germany’s Services PMI for July 2023 (Preliminary) – Forecast 53.1, versus 54.1 previous.
- Euro Zone Manufacturing PMI for July 2023 (Preliminary) – Forecast 43.5, versus 43.4 previous.
- Euro Zone Services PMI for July 2023 (Preliminary) – Forecast 51.5, versus 52.0 previous.
- US Manufacturing PMI for July 2023 (Preliminary) – Forecast 46.4, versus 46.3 previous.
- US Services PMI for July 2023 (Preliminary) – Forecast 54.1, versus 54.4 previous.
