Key Highlights
- EUR/USD started an upside correction above 1.1300.
- A key bullish trend line is forming with support near 1.1270 on the 4-hours chart.
- GBP/USD failed to surpass 1.3350 and started a fresh decline.
- Crude oil price is consolidating losses below $70.00.
EUR/USD Technical Analysis
The Euro started an upside correction from the 1.1186 low against the US Dollar. EUR/USD corrected above the 1.1300 level, but it is facing a lot of hurdles.
Looking at the 4-hours chart, the pair failed on many occasions near the 100 simple moving average (red, 4-hours), and it stayed below the 200 simple moving average (green, 4-hours).
There was a minor upward move above the 23.6% Fib retracement level of the downward move from the 1.1692 swing high to 1.1186 low. On the upside, an initial resistance is near the 1.1350 level.
The next major resistance is near 1.1400 or the 50% Fib retracement level of the downward move from the 1.1692 swing high to 1.1186 low. A clear break above the 1.1350 and 1.1400 levels could start a steady increase.
If not, there could be more losses below the 1.1250 and 1.1240 support levels. In the stated case, the pair may possibly decline towards the 1.1150 level.
Looking at GBP/USD, the pair struggled to gain strength above the 1.3350 level and started a fresh decline. It might continue to move down below 1.3250.
Economic Releases
- German Factory Orders for Oct 2021 (MoM) – Forecast -0.5%, versus +1.3% previous.
- UK’s Construction PMI for Nov 2021 – Forecast 52.0, versus 54.6 previous.
