Key Highlights
- EUR/USD is moving lower below the 1.0820 support.
- A key bearish trend line is forming with resistance near 1.0875 on the 4-hour chart.
- GBP/USD is gaining bearish momentum below the 1.2650 support.
- The US ISM Services PMI could increase from 50.6 to 52.0 in Jan 2023.
EUR/USD Technical Analysis
The Euro struggled to clear the 1.0850 resistance zone against the US Dollar. EUR/USD traded in a range and later declined below the 1.0820 support.
Looking at the 4-hour chart, the pair settled below the 1.0820 zone, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
The bears even pushed the pair below the 1.0800 support. It is now consolidating losses near the 1.0780 level. Immediate support is near the 1.0765 level. The first major support sits near the 1.0750 level. The next major support sits at 1.0700, below which the pair might gain bearish momentum.
In the stated case, the pair could even revisit the 1.0660 support level. On the upside, the bulls are facing hurdles near the 1.0800 level.
The next key resistance is near the 1.0820 level. There is also a key bearish trend line forming with resistance near 1.0875 on the same chart. A close above the 1.0820 zone could open the doors for more upsides. The next stop for the bulls might be 1.0850. Any more gains might send EUR/USD toward the 1.0880 level.
Looking at GBP/USD, there was a strong bearish reaction, and the bears were able to push the pair below the 1.2650 support zone.
Economic Releases
- Euro Zone Services PMI for Jan 2023 – Forecast 48.4, versus 48.4 previous.
- UK Services PMI for Jan 2023 – Forecast 53.8, versus 53.8 previous.
- US Services PMI for Jan 2023 – Forecast 52.9, versus 52.9 previous.
- US ISM Services PMI for Jan 2023 – Forecast 52.0, versus 50.6 previous.
