Key Highlights
- EUR/USD started a fresh increase above the 1.0850 resistance.
- A key rising channel is forming with resistance near 1.0900 on the 4-hours chart.
- GBP/USD eyes a crucial upside break above the 1.2450 resistance.
- The Euro Zone Consumer Confidence could decline from -22.2 to -22.5 in Jan 2022 (Preliminary).
EUR/USD Technical Analysis
The Euro started a major uptrend above the 1.0750 resistance against the US Dollar. EUR/USD even broke the 1.0800 level to move into a positive zone.
Looking at the 4-hours chart, the pair settled nicely above the 1.0820 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
The pair even cleared the 1.0850 resistance and tested the 1.0900 zone. On the upside, an initial resistance is near the 1.0900 level. There is also a key rising channel forming with resistance near 1.0900 on the same chart.
The next major resistance may perhaps be near 1.0950. A clear move above the 1.0950 resistance might start a steady increase towards the 1.1000 resistance zone.
Any more gains could open the doors for a move towards the 1.1200 level. The next key hurdle is near 1.1250, above which the pair could climb towards the 1.1400 resistance zone.
On the downside, there is a major support at 1.0850. The next major support is near the 1.0820 level. A downside break below the 1.0820 zone might push the pair lower.
The next major support sits near the 1.0750 level. Any more losses might open the doors for a move towards the 1.0650 support zone.
Looking at GBP/USD, the pair is attempting an upside break above the 1.2450 and 1.2500 resistance levels.
Economic Releases
- Euro Zone Consumer Confidence for Jan 2022 (Preliminary) – Forecast -22.5, versus -22.2 previous.
