Key Highlights
- EUR/USD started a fresh decline below the 1.0750 support.
- A connecting bearish trend line is forming with resistance near 1.0730 on the 4-hour chart.
- GBP/USD dropped below the key 1.2500 support zone.
- USD/JPY is aiming for a move toward the 148.80 resistance.
EUR/USD Technical Analysis
The Euro faced rejection above the 1.0900 level against the US Dollar. As a result, EUR/USD started a fresh decline below the 1.0850 and 1.0780 levels.
Looking at the 4-hour chart, the pair settled below the 1.0750 support, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
The pair even traded below 1.0700 before the bulls appeared. The pair is now consolidating losses and remains at risk of more downsides. On the downside, immediate support is near 1.0675. The next key support is seen near the 1.0650 level.
The first major support is near 1.0620. If there is a move below 1.0620, the pair could dive toward 1.0550. Any more losses might send the pair toward the 1.0500 level.
On the upside, an initial resistance is near the 1.0725 level. There is also a connecting bearish trend line forming with resistance near 1.0730 on the same chart. The next major resistance is near the 1.0785 level. A close above 1.0785 could start another decent increase.
In the stated case, the pair could rise toward the 1.0850 level. Any more gains could send the pair toward the 1.0950 pivot zone.
Looking at GBP/USD, the pair remained in a bearish zone and there was an extended decline below the 1.2500 support.
Economic Releases
- BoE’s Mann speech.
