EUR/USD Starts Fresh Decline, Can Bulls Protect 1.1300?

Key Highlights

• EUR/USD started a fresh decline below the 1.1380 support.
• It traded below a bullish trend line with support near 1.1370 on the 4-hours chart.
• GBP/USD extended decline below the 1.3620 support zone.
• The Euro Zone Manufacturing PMI could decline from 58 to 57.5 in Jan 2022 (Preliminary).

EUR/USD Technical Analysis

The Euro failed to continue higher above 1.1480 against the US Dollar. EUR/USD started a fresh decline below the 1.1400 and 1.1380 support levels.

Looking at the 4-hours chart, the pair settled below the 1.1400 level and the 100 simple moving average (red, 4-hours). Besides, there was a break below a bullish trend line with support near 1.1370.

The pair even traded below the 1.1350 support and the 200 simple moving average (green, 4-hours). It traded as low as 1.1300 and currently consolidating losses. On the upside, the pair is facing resistance near 1.1370 and 1.1380 levels.

The next major resistance is near the 1.1400 level. It is near the 50% Fib retracement level of the downward move from the 1.1482 swing high to 1.1300 low.

If there is a fresh close above 1.1400, the pair could rise above 1.1450. If not, there is a risk of more downsides below the 1.1300 level. The next major support sits near the 1.1250 level.

Looking at GBP/USD, the pair gained bearish momentum after there was a clear move below the 1.3700 and 1.3650 levels.

Economic Releases

• Germany’s Manufacturing PMI for Jan 2022 (Preliminary) – Forecast 57.0, versus 57.4 previous.
• Germany’s Services PMI for Jan 2022 (Preliminary) – Forecast 48.0, versus 48.7 previous.
• Euro Zone Manufacturing PMI for Jan 2022 (Preliminary) – Forecast 57.5, versus 58.0 previous.
• Euro Zone Services PMI for Jan 2022 (Preliminary) – Forecast 52.2, versus 53.1 previous.
• UK Manufacturing PMI for Jan 2022 (Preliminary) – Forecast 57.9, versus 57.9 previous.
• UK Services PMI for Jan 2022 (Preliminary) – Forecast 55.0, versus 53.6 previous.
• US Manufacturing PMI for Jan 2022 (Preliminary) – Forecast 56.8, versus 57.7 previous.
• US Services PMI for Jan 2022 (Preliminary) – Forecast 55.0, versus 57.6 previous.