Key Highlights
- EUR/USD extended its rise above the 1.1400 resistance area.
- A significant bullish trend line is forming with support near 1.1310 on the 4-hours chart.
- GBP/USD failed to stay above 1.2600, but it is trading above a strong support at 1.2500.
- USD/JPY struggled to clear the 107.25 and 107.50 resistance levels.
EUR/USD Technical Analysis
This past week, the Euro gained bullish momentum above the 1.1350 resistance against the US Dollar. EUR/USD traded towards 1.1450 and it is currently showing signs of more upsides.
Looking at the 4-hours chart, the pair settled nicely above the 1.1370 resistance level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
It traded as high as 1.1452 before correcting lower. There was a drop below the 1.1400 level. However, the 1.1370 support zone acted as a strong support along with the 38.2% Fib retracement level of the upward move from the 1.1254 low to 1.1452 high.
There is also a significant bullish trend line forming with support near 1.1310 on the same chart. The trend line is close to the 100 simple moving average (red, 4-hours).
Therefore, dips in EUR/USD could find support near 1.1370 or 1.1310. Any further losses may perhaps push the pair into a bearish zone. Conversely, it may perhaps continue to climb higher above 1.1450 and 1.1465 levels.
The next major resistance is near the 1.1500 level. Looking at GBP/USD, the pair seems to be holding the 1.2500 support level, but it is facing a major hurdle near 1.2600 and 1.2620.
Upcoming Economic Releases
- German Producer Price Index June 2020 (YoY) – Forecast -1.5%, versus -2.2% previous.
- Euro Zone Current Account May 2020 – Forecast €19.1B versus €14.4B previous.
