Key Highlights
- EUR/USD started an upside correction above 1.1750 and 1.1800.
- It broke a major bearish trend line with resistance near 1.1725 on the 4-hours chart.
- GBP/USD is still struggling to clear the 1.3800 resistance zone.
- The Euro Zone Consumer Confidence could remain at -5.3 in August 2021.
EUR/USD Technical Analysis
The Euro formed a base above the 1.1660 zone against the US Dollar. EUR/USD started a fresh increase and it broke the key 1.1750 resistance zone.
Looking at the 4-hours chart, the pair was able to gain strength above the 1.1750 and 1.1760 resistance levels. There was a break above the 50% Fib retracement level of the downward move from the 1.1908 swing high to 1.1663 swing low.
There was also a break above a major bearish trend line with resistance near 1.1725. The pair is now trading above 1.1800, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
An immediate resistance is near the 1.1815 level. It is near the 61.8% Fib retracement level of the downward move from the 1.1908 swing high to 1.1663 swing low.
The next major resistance is near the 1.1850 level. Any more gains could lead the pair towards the 1.1900 resistance region. On the downside, an initial support is near the 1.1785 level and the 200 simple moving average (green, 4-hours).
The main support is now forming near 1.1740 and the 100 simple moving average (red, 4-hours). A close below the 1.1740 level might open the doors for more losses. The next major support is near the 1.1665 level.
Looking at GBP/USD, the pair broke the 1.3700 zone but it is still facing hurdle near 1.3800. Besides, gold price gained strength above the $1,800 level.
Economic Releases
- Euro Zone Consumer Confidence for August 2021 – Forecast -5.3, versus -5.3 previous.
- German Consumer Price Index for August 2021 (YoY) (Prelim) – Forecast +3.9%, versus +3.8% previous.
- German Consumer Price Index for August 2021 (MoM) (Prelim) – Forecast +0.1%, versus +0.9% previous.
- US Pending Home Sales for July 2021 (YoY) – Forecast +0.1%, versus -1.9% previous.
