Key Highlights
- EUR/USD failed to surpass 1.0000 and reacted to the downside.
- A key bearish trend line is forming with resistance near 0.9880 on the 4-hours chart.
- GBP/USD failed to recover above the 1.1500 resistance and declined.
- Crude oil price rallied above the $90 resistance zone.
EUR/USD Technical Analysis
The Euro attempted a recovery wave above the 0.9800 resistance against the US Dollar. EUR/USD climbed above the 0.9880 resistance, but it struggled near the parity level.
Looking at the 4-hours chart, the pair struggled to climb above the 0.9980 and 1.0000 resistance levels. A high was formed near 0.9999 and the pair reacted the downside. There was a move below the 0.9950 and 0.9900 support levels.
The pair declined below the 50% Fib retracement level of the upward move from the 0.95.36 swing low to 0.9999 high. It even settled below the 0.9850 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
On the downside, an initial support is near the 0.9700 level. The main support sits at the 0.9650 level. It is close to the 76.4% Fib retracement level of the upward move from the 0.95.36 swing low to 0.9999 high.
A downside break below the 0.9650 zone might send the pair towards the 0.9550 level or even to a new multi-year low.
An immediate resistance is near the 0.9820 level. The next major resistance is near the 0.9880 level. There is also a key bearish trend line forming with resistance near 0.9880 on the same chart.
A clear move above the 0.9880 level might send the pair towards the 0.9950 level. The next major hurdle could be near the 1.0000 level.
Looking at GBP/USD, the pair also failed to clear the 1.1500 resistance zone and there was a bearish reaction below the 1.1250 level.
Economic Releases
- Euro Zone Sentix Investor Confidence for Oct 2022 – Forecast -30.8, versus -31.8 previous.
- IMF Meeting.
