Key Highlights
- EUR/USD started a recovery wave above the 0.9900 resistance zone.
- It broke a major bearish trend line with resistance near 0.9855 on the 4-hours chart.
- Gold and oil price started a fresh increase above $1,650 and $90 respectively.
- GBP/USD eyes a fresh increase above the 1.1400 resistance zone.
EUR/USD Technical Analysis
The Euro declined heavily below the 0.9950 level against the US Dollar. EUR/USD even declined below 0.9850 before the bulls appeared near 0.9730.
Looking at the 4-hours chart, the pair traded as low as 0.9730 before it started an upside correction. There was a steady upward move above the 0.9820 resistance zone, the 100 simple moving average (red, 4-hours) plus the 200 simple moving average (green, 4-hours).
There was a break above a major bearish trend line with resistance near 0.9855 on the same chart. The pair is now trading above the 50% Fib retracement level of the downward move from the 1.0093 swing high to 0.9730 low.
It is now facing resistance near the 0.9960 level. It is near the 61.8% Fib retracement level of the downward move from the 1.0093 swing high to 0.9730 low.
The next major resistance may perhaps be near 1.0000. Any more gains could set the pace for a move towards the 1.0080 level, above which it could even test 1.0120.
An initial support is near the 0.9900 level. The next major support is near the 0.9850 zone. The main support sits at 0.9820 zone or the 200 simple moving average (green, 4-hours).
A close below the 0.9820 level and the 200 simple moving average (green, 4-hours) could increase selling pressure. In the stated case, it could decline towards the 0.9720 support.
Looking at GBP/USD, the pair tested the 1.1150 support zone and is currently attempting a fresh increase above the 1.1400 zone.
Economic Releases
- Germany’s Industrial Production for Sep 2022 (MoM) – Forecast -0.8%, versus -0.8% previous.
