Key Highlights
- EUR/USD is consolidating above the 1.0920 support.
- A major bearish trend line is forming with resistance near 1.1030 on the 4-hour chart.
- GBP/USD is attempting a fresh increase from the 1.2600 zone.
- USD/JPY is showing positive signs above the 142.00 zone.
EUR/USD Technical Analysis
The Euro started a fresh decline from 1.1150 resistance against the US Dollar. EUR/USD declined below 1.1000 to enter a short-term bearish zone.
Looking at the 4-hour chart, the pair settled below the 1.1000 level and the 100 simple moving average (red, 4 hours). The pair even traded below 1.0950 and the 200 simple moving average (green, 4 hours).
A low is formed near 1.0912 and the pair is now attempting a fresh increase. There was a move above the 1.0965 resistance. The pair jumped above the 23.6% Fib retracement level of the downward move from the 1.1150 swing high to the 1.0912 low.
On the upside, the pair is facing resistance near the 1.1020 level. There is also a major bearish trend line forming with resistance near 1.1030 on the same chart.
A close above the 1.1030 resistance could push the pair toward 1.1080. Any more gains could start a fresh increase toward the 1.1150 level.
Initial support is near the 1.0965 level. The next major support is near 1.0920, below which EUR/USD could gain bearish momentum. In the stated case, the pair could test the 1.0840 support.
Looking at GBP/USD, the pair extended its decline below the 1.2650 level and is currently attempting a recovery wave.
Economic Releases
- Euro Zone Sentix Investor Confidence for August 2023 – Forecast -23.4, versus -22.5 previous.
