Key Highlights
- EUR/USD started a recovery wave above the 1.0650 resistance.
- It broke a key contracting triangle with resistance near 1.0665 on the 4-hour chart.
- GBP/USD surged above the 1.2300 resistance zone.
- Ethereum and XRP extended their rally with strong bullish moves.
EUR/USD Technical Analysis
The Euro formed a base and started a recovery wave above 1.0600 against the US Dollar. EUR/USD cleared many hurdles near 1.0620 to move into a positive zone.
Looking at the 4-hour chart, the pair broke a key contracting triangle with resistance near 1.0665. It even settled above the 1.0700 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
Finally, it tested the 1.0750 resistance. If the bulls remain in action, there could be more upsides toward the 1.0800 level. Any more gains might send it toward the 1.0880 level.
If there is a downside correction, the pair might find bids near the 1.0700 level. The first major support is now forming near the 1.0665 level, below which the pair could test the 1.0635 pivot level in the near term.
The main support sits near the 1.0580 level and the 100 simple moving average (red, 4 hours). A downside break below the 1.0580 level might spark a sharp decline. The next key support sits at 1.0500.
Looking at GBP/USD, the pair found support near the 1.2070 level and recently started a strong increase above the 1.2300 level.
Economic Releases
- US Goods and Services Trade Balance for Sep 2023 – Forecast $-60.2B, versus $-58.3B previous.
