Key Highlights
- EUR/USD started a downside correction from the 1.0980 zone.
- A connecting bullish trend line is forming with support at 1.0885 on the 4-hour chart.
- GBP/USD slipped below the 1.2800 support zone and tested 1.2735.
- The Euro Zone CPI could increase 2.6% in Feb 2024 (YoY).
EUR/USD Technical Analysis
The Euro failed to continue higher above the 1.0980 resistance against the US Dollar. EUR/USD started a downside correction and traded below the 1.0920 support.
Looking at the 4-hour chart, the pair traded below the 1.0900 support, but the bulls are active above the 1.0880 level and the 100 simple moving average (red, 4-hour). The pair traded as low as 1.0872 and is currently well above the 200 simple moving average (green, 4-hour).
There is also a connecting bullish trend line forming with support at 1.0885 on the same chart. On the upside, the pair could face resistance near the 1.0900 level.
The first major resistance is now forming near 1.0915. 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 1.0980.
Immediate support is near the 1.0885 level and the trend line. The next major support is at 1.0820. If there is a downside break below the 1.0820 support, the pair could decline toward the 1.0750 support.
Looking at GBP/USD, the pair declined below the 1.2800 support and now there is a risk of more downsides in the near term.
Economic Releases
- Euro Zone CPI for Feb 2024 (YoY) – Forecast +2.6%, versus +2.6% previous.
- Euro Zone Core CPI for Feb 2024 (YoY) – Forecast +3.1%, versus +3.1% previous.
