Key Highlights
- EUR/USD is correcting gains from the 1.0750 resistance zone.
- A key declining channel is forming with resistance near 1.0690 on the 4-hour chart.
- Gold prices started a downside correction from the $2,010 level.
- USD/JPY regained strength and was able to clear the 151.50 resistance.
EUR/USD Technical Analysis
The Euro moved into a bullish zone above the 1.0620 level against the US Dollar. EUR/USD even tested the 1.0750 zone before the bears appeared.
Looking at the 4-hour chart, the pair traded as high as 1.0756 before there was a downside correction. The pair declined below the 23.6% Fib retracement level of the upward move from the 1.0516 swing low to the 1.0756 high.
It is still trading well above the 1.0620, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
There is also a key declining channel forming with resistance near 1.0690 on the same chart. If there is a fresh increase, the pair could surpass the channel resistance. The next key resistance is near the 1.0720 level.
The main resistance is still near the 1.0750 level. A close above the 1.070 zone could open the doors for more upsides. The next stop for the bulls might be 1.0880.
If not, the pair might start another drop below the 1.0650 support. The first major support is now forming near the 1.0635 level or the 50% Fib retracement level of the upward move from the 1.0516 swing low to the 1.0756 high, below which the pair could test the 1.0620 pivot level in the near term.
The main support sits near the 1.0520 zone. A downside break below 1.0520 might spark a sharp decline. The next key support sits at 1.0440.
Looking at USD/JPY, the pair is rising and might soon aim for a new high above the 151.75 resistance zone in the coming sessions.
Economic Releases
- European Commission releases Economic Growth Forecasts.
