Key Highlights
- EUR/USD failed to surpass the 1.1350 resistance zone.
- It traded below a key bullish trend line at 1.1265 on the 4-hours chart.
- GBP/USD topped near 1.3350 and started a fresh decline.
- Crude oil price could continue to move down if it breaks $70.00.
EUR/USD Technical Analysis
The Euro tried to gain strength above 1.1350 against the US Dollar. EUR/USD formed a high near 1.1360 and started a fresh decline.
Looking at the 4-hours chart, the pair traded below the 1.1320 and 1.1300 support levels. There was a close below 1.1300, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
Besides, there was a break below a key bullish trend line at 1.1265 on the same chart. An immediate support is near the 1.1200 level.
A close below 1.1200 could open the doors for a sharp decline. The next major support is near the 1.1180 level, below which the pair might drop to 1.1120.
On the upside, the first key resistance is near the 1.1320 level. The next key resistance is near the 1.1350 level. A successful daily close above 1.1350 could open the doors for a steady increase. The next stop for the bulls might be 1.1420.
Looking at GBP/USD, the pair failed to clear the 1.3350 resistance and started a fresh decline below the 1.3300 level.
Economic Releases
- UK Rightmove House Price Index for Dec 2021 (MoM) – Forecast -0.2%, versus -0.6% previous.
