Key Highlights
- EUR/USD declined below the 1.0920 and 1.0900 levels.
- A key bearish trend line is forming with resistance near 1.0885 on the 4-hour chart.
- Bitcoin price saw a major decline below the $27,000 level.
- GBP/USD is consolidating below the 1.2800 zone.
EUR/USD Technical Analysis
The Euro started a major decline from well above 1.0000 against the US Dollar. EUR/USD traded below the 1.0950 support to move into a bearish zone.
Looking at the 4-hour chart, the pair settled below the 1.0950 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
There was also a drop below the 1.0900 level and the pair tested 1.0845. The pair is now consolidating losses and facing many hurdles. On the upside, an initial resistance is near the 1.0885 level. There is also a key bearish trend line forming with resistance near 1.0885 on the same chart.
The first major resistance is near 1.0930. A close above the 1.0930 resistance could start a decent increase. In the stated case, the pair could rise toward the 1.0955 level. Any more gains could start a fresh increase toward the 1.1020 level.
If not, the pair might continue lower below the 1.0845 level. The first key support is seen near the 1.0800 level. If there is a move below 1.0800, the pair could dive toward 1.0720.
Looking at Bitcoin, there was a sharp bearish reaction and the price declined below the $27,000 support zone.
Economic Releases
- German Producer Price Index for July 2023 (MoM) – Forecast -5.1%, versus +0.1% previous.
