Key Highlights
- EUR/USD started a downside correction from the 1.1145 level.
- A connecting bullish trend line is forming with support at 1.0840 on the 4-hour chart.
- GBP/USD dipped heavily below the 1.3050 and 1.3000 levels.
- Gold prices corrected gains and traded below the $3,050 level.
EUR/USD Technical Analysis
The Euro faced a strong rejection near 1.1150 against the US Dollar. EUR/USD started a major decline below the 1.1050 and 1.1000 levels.
Looking at the 4-hour chart, the pair traded below the 50% Fib retracement level of the upward move from the 1.0732 swing low to the 1.1146 high. However, the pair is still above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
There is also a connecting bullish trend line forming with support at 1.0840 on the same chart. If there is a fresh increase, the pair could face resistance near the 1.0980 level.
The next major resistance is near the 1.1050 level. The main resistance is now forming near the 1.1150 zone. A close above the 1.1150 level could set the tone for another increase. In the stated case, the pair could even clear the 1.1200 resistance.
On the downside, immediate support sits near the 1.0840 level. The next key support sits near the 1.0820 level. Any more losses could send the pair toward the 1.0750 level.
Looking at Gold, the price started a sharp downside correction and there was a clear move below the $3,050 level.
Upcoming Economic Events:
- Euro Zone Retail Sales for Feb 2025 (MoM) – Forecast +0.5%, versus -0.3% previous.
