Key Highlights
- EUR/USD struggled near 1.1020 and started a fresh decline.
- It traded below a key bullish trend line with support at 1.0860 on the 4-hour chart.
- GBP/USD is also correcting gains below the 1.2600 level.
- Gold prices declined heavily and traded below $2,000.
EUR/USD Technical Analysis
The Euro failed to gather momentum above the 1.1000 level against the US Dollar. EUR/USD formed a short-term top and started a fresh decline below 1.0920.
Looking at the 4-hour chart, the pair settled below the 1.0880 support, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
It traded below a key bullish trend line with support at 1.0860 on the same chart. There was a drop below the 61.8% Fib retracement level of the upward move from the 1.0656 swing low to the 1.1017 high.
The pair is now consolidating above the 76.4% Fib retracement level of the upward move from the 1.0656 swing low to the 1.1017 high.
If there is a downside break below the 1.0740 support, the pair could drop toward the 1.0700 level. The next major support is 1.0650, below which the bears might take control.
On the upside, immediate resistance is near the 1.0820 level. The next key resistance is near the 1.0880 level. The main resistance is near 1.0920. A close above the 1.0920 zone could open the doors for more upsides. The next stop for the bulls might be 1.1000.
Looking at GBP/USD, the pair is also moving lower and there is a risk of a drop toward the 1.2440 support in the near term.
Economic Releases
- Japanese Machine Tool Orders (YoY) for Nov 2023 – Forecast -18.0%, versus -20.6% previous.
