Key Highlights
- EUR/USD gained bullish momentum and cleared the 1.1150 resistance.
- A major bullish trend line is forming with support near 1.1165 on the 4-hour chart.
- GBP/USD also cleared the 1.3000 resistance and extended gains.
- Crude oil price started a downside correction from the $77.25 zone.
EUR/USD Technical Analysis
The Euro started a major increase above the 1.1150 resistance against the US Dollar. EUR/USD even broke 1.1200 to move further into a bullish zone.
Looking at the 4-hour chart, the pair settled above the 1.1200 level, the 200 simple moving average (green, 4 hours), and the 100 simple moving average (red, 4 hours).
It tested the 1.1250 zone and started a consolidation phase. Immediate support is near the 1.1180 level. There is also a major bullish trend line forming with support near 1.1165 on the same chart.
The next major support is at 1.1080, below which there could be a drop to 1.1040. Any more losses might send the pair toward the 1.0980 support zone. On the upside, immediate resistance is near the 1.1250 level.
The next major resistance is near 1.1320. If there is a move above the 1.1320 resistance, the pair could rise toward 1.1350. Any more gains might send the pair toward the 1.1450 resistance zone in the near term.
Looking at GBP/USD, the pair gained strength above the 1.3000 resistance zone and it is currently consolidating gains.
Economic Releases
- NY Empire State Manufacturing Index for July 2023 – Forecast 0, versus 6.6 previous.
