Key Highlights
- EUR/USD failed to recover above the parity level and declined.
- It broke a key rising channel with support at 0.9940 on the 4-hours chart.
- GBP/USD is accelerating lower below the 1.1800 support zone.
- AUD/USD and NZD/USD are also gaining bearish momentum.
EUR/USD Technical Analysis
The Euro attempted a recovery wave from the 0.9900 zone against the US Dollar. EUR/USD moved above the 0.9950 and 0.9980 resistance levels, but upsides were limited.
Looking at the 4-hours chart, the pair settled below the 1.0050 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
Recently, it saw a minor upward move above the 1.0000 resistance zone. However, the bears were active near the 1.0080 level. It failed to clear the 38.2% Fib retracement level of the downward move from the 1.0368 swing high to 0.9902 low.
It started a fresh decline below the 1.0000 support. There was a break below a key rising channel with support at 0.9940 on the same chart.
The pair is now approaching the 0.9900 support zone. If there is a downside break below the 0.9900 support, the pair could decline towards the 0.9850 support. Any more losses might call for a move towards 0.9720.
Conversely, the pair might rise again above 0.9950. On the upside, the pair is facing resistance near the 1.0000 level. The next major resistance is near the 1.0080 level. A clear move above the 1.0080 resistance might send the pair higher towards the 1.0120 level or the 100 simple moving average (red, 4-hours).
The 50% Fib retracement level of the downward move from the 1.0368 swing high to 0.9902 low is also near the 1.0135 zone to act as a resistance.
Looking at GBP/USD, the pair struggled to clear the 1.1900 level and started a fresh decline below the 1.1800 support zone.
Economic Releases
- Dallas Fed Manufacturing Business Index for August 2022 – Forecast -20.2, versus -22.6 previous.
