Key Highlights
- EUR/USD started a fresh decline below the 1.0820 support zone.
- A key bearish trend line is forming with resistance at 1.0875 on the 4-hour chart.
- Gold prices rallied further above the $2,250 resistance.
- The US ISM Manufacturing Index could increase from 47.8 to 48.4 in March 2024.
EUR/USD Technical Analysis
The Euro started another decline from the 1.0940 zone against the US Dollar. EUR/USD traded below the 1.0920 and 1.0880 levels to move into a bearish zone.
Looking at the 4-hour chart, the pair even settled below the 1.0850 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Finally, the pair traded below the 1.0820 support.
A low was formed near 1.0767 and the pair is now consolidating losses. On the upside, the pair could face resistance near the 1.0800 level. The first major resistance is now forming near 1.0820.
The main resistance is now forming near 1.0850. There is also a key bearish trend line forming with resistance at 1.0875 on the same chart. A close above the 1.0875 zone could open the doors for more upsides.
The next stop for the bulls might be 1.0940. If not, the pair might continue to decline. Immediate support is near the 1.0775 level.
The next major support is at 1.0750. If there is a downside break below the 1.0750 support, the pair could decline toward the 1.0700 support. Any more losses might send the pair toward the 1.0650 level in the near term.
Looking at Gold, the bulls were able to push the price further higher above the $2,250 resistance zone and there are chances of more gains toward $2,265.
Economic Releases
- US ISM Manufacturing Index for March 2024 – Forecast 48.4, versus 47.8 previous.
