Key Highlights
- EUR/USD corrected lower after it failed to gain strength above 1.2250.
- It is trading above the key 1.2100 and 1.2080 support levels on the 4-hours chart.
- GBP/USD remains elevated and it could rally above 1.4200.
- Oil price climbed above $65.00, gold price broke the $1,900 resistance zone.
EUR/USD Technical Analysis
The Euro extended its rise above the 1.2220 level against the US Dollar. However, EUR/USD failed to gain momentum above 1.2250 and corrected lower.
Looking at the 4-hours chart, the pair traded as high as 1.2266. Recently, there was a downside correction below the 1.2220 and 1.2200 support levels. There was a also a break below a rising channel with support near 1.2200.
The pair spiked below 1.2140 and the 100 simple moving average (red, 4-hours). It is still trading well above the 1.2100 support level and the 200 simple moving average (green, 4-hours).
The next major support is near the 1.2080 level, below which the pair might retest the 1.2050 support zone. On the upside, an initial resistance is near the 1.2240 level.
The main breakout resistance is near the 1.2255 and 1.2260 levels. A follow up move above 1.2260 could set the pace for more gains towards the 1.2320 resistance.
Similarly, GBP/USD is trading nicely above the 1.4100 and it could rally if there is a daily close above the 1.4200 resistance zone.
Economic Releases
- German Consumer Price Index for May 2021 (YoY) – Forecast +2.4%, versus +2.0% previous.
- German Consumer Price Index for May 2021 (MoM) – Forecast +0.3%, versus +0.7% previous.
