Key Highlights
- EUR/USD failed to recover above 1.0450 and declined again.
- A short-term bearish trend line is forming with resistance at 1.0300 on the 4-hour chart.
- GBP/USD accelerated losses below the 1.2250 support.
- Crude oil prices surged above the $75.00 and $76.00 levels.
EUR/USD Technical Analysis
The Euro remained in a bearish zone below 1.0450 against the US Dollar. EUR/USD started another decline below the 1.0400 and 1.0350 levels.
Looking at the 4-hour chart, the pair settled below the 1.0320 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair tested the 1.0215 zone and is currently consolidating losses.
On the upside, the pair is facing hurdles near the 1.0300 level. There is also a short-term bearish trend line forming with resistance at 1.0300 on the same chart.
The first major resistance is near the 1.0335 level. The next major resistance is near the 1.0350 level. A close above the 1.0350 level could set the tone for another increase. In the stated case, the pair could rise toward the 1.0450 resistance.
On the downside, immediate support sits near the 1.0215 level. The next key support sits near the 1.0200 level. Any more losses could send the pair toward the 1.01120 level.
Looking at GBP/USD, the pair started another decline and the bears were able to push the pair below the 1.2250 support.
Upcoming Economic Events:
- US Producer Price Index for Dec 2024 (MoM) – Forecast +0.3%, versus +0.4% previous.
- US Producer Price Index for Dec 2024 (YoY) – Forecast +3.0%, versus +3.0% previous.
