Key Highlights
- EUR/USD started a recovery wave above the 1.0520 resistance zone.
- A key rising channel is forming with support near 1.0500 on the 4-hour chart.
- GBP/USD is attempting to recover above the 1.2750 resistance zone.
- Crude Oil prices are again moving lower and might decline below $66.50.
EUR/USD Technical Analysis
The Euro started a recovery wave above the 1.0450 and 1.0500 levels against the US Dollar. EUR/USD climbed above 1.0520 to move into a short-term positive zone.
Looking at the 4-hour chart, the pair surpassed the 38.2% Fib retracement level of the downward move from the 1.0936 swing high to the 1.0333 low. The pair recovered above the 1.0600 resistance level and the 100 simple moving average (red, 4-hour).
On the upside, the pair could face resistance near the 1.0635 level. It is close to the 50% Fib retracement level of the downward move from the 1.0936 swing high to the 1.0333 low.
The first major resistance is near the 1.0665 level and the 200 simple moving average (green, 4-hour). A close above the 1.0665 level could set the tone for another increase. The next major resistance could be the 1.0800 level, above which the price could climb higher toward the 1.0880 resistance.
On the downside, immediate support sits near the 1.0520 level. The next key support sits near the 1.0450 level. Any more losses could send the pair toward the 1.0420 level.
Looking at Oil, the bears remained in action below the $72.50 resistance, and they might aim for a drop below $65.00 in the near term.
Upcoming Economic Events:
- US Wholesale Inventories for Feb 2024 (preliminary) – Forecast +0.2%, versus +0.2% previous.
