Key Highlights
- EUR/USD extended its decline below the 1.1900 and 1.1850 support levels.
- A major bearish trend line is forming with resistance near 1.1850 on the 4-hours chart.
- GBP/USD is likely to face resistance near 1.3880 and 1.3900.
- USD/JPY extended its rally above 109.50 and traded to a new multi-month high.
EUR/USD Technical Analysis
This past week, the Euro extended its decline below the 1.1900 support against the US Dollar. EUR/USD even broke the 1.1850 support to move further into a bearish zone.
Looking at the 4-hours chart, the pair declined below 1.1800 and traded as low as 1.1761. There was a close below the 1.1850 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The pair is consolidating losses, with an immediate resistance near the 1.1850 level. There is also a major bearish trend line forming with resistance near 1.1850 on the same chart.
The trend line is close to the 50% Fib retracement level of the recent decline from the 1.1946 high to 1.1761 low. The main resistance is now forming near the 1.1900 level and the 100 simple moving average (red, 4-hours).
On the downside, the pair might find bids near 1.1760 and 1.1750. Any more losses could lead EUR/USD towards the 1.1680 support zone.
Overall, EUR/USD is likely to face resistance near 1.1850 and 1.1900. Similarly, GBP/USD might face hurdles near 1.3880 and 1.3900 levels. Besides, USD/JPY extended its rally above 109.50 and traded to a new multi-month high.
Economic Releases
- Dallas Fed Manufacturing Business Index for March 2021 – Forecast 18.0, versus 17.2 previous.
