Key Highlights
- EUR/USD is attempting a steady recovery wave above 1.1620.
- A key bullish trend line is forming with support near 1.1640 on the 4-hours chart.
- GBP/USD is struggling to gain momentum above 1.3800.
- The German IFO Business Climate Index could decline from 98.8 to 97.8 in Oct 2021.
EUR/USD Technical Analysis
The Euro started a recovery wave from the 1.1524 low against the US Dollar. EUR/USD cleared the 1.1600 resistance zone to move into a short-term positive zone.
Looking at the 4-hours chart, the pair even traded above the 1.1620 level and the 100 simple moving average (red, 4-hours). However, it seems to be facing resistance near the 1.1650 level.
The 200 simple moving average (green, 4-hours) is also near the 1.1665 level. A clear break above the 1.1665 level could open the doors for more gains. The next major resistance on the upside is near the 1.1720 level.
The next key resistance is near the 1.1750 level, above which the pair could rise towards 1.1800. An immediate support on the downside is near the 1.1640 level.
There is also a key bullish trend line forming with support near 1.1640 on the same chart. The next major support is near 1.1620, below which there is a risk of a larger decline. In the stated case, the pair could decline towards the 1.1550 level.
Looking at GBP/USD, the pair is trading in a positive zone, but it is facing a strong selling interest near the 1.3800 level. Besides, USD/JPY is still trading well above the 113.00 level.
Economic Releases
- German IFO Business Climate Index for Oct 2021 – Forecast 97.8, versus 98.8 previous.
- German IFO Current Assessment Index for Oct 2021 – Forecast 99.3, versus 100.4 previous.
- German IFO Expectations Index for Oct 2021 – Forecast 96.1, versus 97.3 previous.
