Key Highlights
- EUR/USD is moving lower below the 1.1000 support.
- It broke a rising channel with support near 1.0950 on the 4-hour chart.
- GBP/USD could extend losses toward 1.2550.
- Gold prices are moving lower below the $1,920 level.
EUR/USD Technical Analysis
The Euro started a fresh decline from well above 1.1120 against the US Dollar. EUR/USD traded below the 1.1050 support to move into a bearish zone.
Looking at the 4-hour chart, the pair settled below the 1.1000 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
The pair also traded below a rising channel with support near 1.0950 on the same chart. The pair is now trading near 1.0930 with a bearish angle. Initial support is near the 1.0920 level. The next major support is near 1.0900, below which EUR/USD could gain bearish momentum.
In the stated case, the pair could test the 1.0850 support. On the upside, the pair could face resistance near the 1.0960 level. The next major resistance is near the 1.1000 level.
A close above the 1.0000 resistance could push the pair toward 1.1050. Any more gains could start a fresh increase toward the 1.1120 level.
Looking at GBP/USD, the pair is also moving lower and there is a risk of a drop toward the 1.2550 level in the near term.
Economic Releases
- German Wholesale Price Index for July 2023 (MoM) – Forecast -1.4%, versus -0.2% previous.
