Key Highlights
- EUR/USD broke a major hurdle near 1.1780 and 1.1800.
- GBP/USD surged and cleared the main 1.3000 resistance.
- Gold price gained bullish momentum above the $1,915 resistance zone.
- USD/JPY corrected gains after it failed to continue higher above 106.20.
EUR/USD Technical Analysis
This past week, we discussed a crucial hurdle for the Euro near 1.1800 against the US Dollar. EUR/USD managed to gain strength, and it cleared the 1.1780 and 1.1800 resistance levels.
Looking at the 4-hours chart, the pair remained well bid above the 1.1700 and 1.1720 levels. There was a break above the 50% Fib retracement level of the key decline from the 1.1871 high to 1.1612 low.
As a result, there was a strong upward move above a crucial bearish trend line at 1.1780. The upward move gained pace above the 1.1800 resistance, and it even surpassed the 76.4% Fib retracement level of the key decline from the 1.1871 high to 1.1612 low.
It is now trading nicely above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours). On the upside, the first major resistance is near the 1.1850 level, above which the pair is likely to continue higher towards 1.1880 or 1.1920.
If there is a downside correction, the pair might find support near the 1.1800 level. The first key support is near the broken trend line or 1.1780. The main support is near the 1.1740 and the 100 SMA, below which the pair could revisit 1.1700.
Overall, the US Dollar trimmed gains across the board and it even retreated lower from the 106.11 high against the Japanese Yen. More importantly, gold price was able to clear a significant hurdle near the $1,910 and $1,915 levels. Similarly, GBP/USD surpassed the key breakout zone at 1.3000.
Upcoming Economic Releases
- ECB’s President Lagarde speech.
- BoE’s Governor Bailey speech.
