Key Highlights
- EUR/USD is struggling to rise above the 1.0880 resistance zone.
- A major bearish trend line is forming with resistance at 1.0875 on the 4-hour chart.
- GBP/USD is facing many hurdles near the 1.2720 zone.
- Gold prices rallied further above the $2,300 level.
EUR/USD Technical Analysis
The Euro started a recovery wave from the 1.0720 zone against the US Dollar. EUR/USD is now correcting losses and facing hurdles near the 1.0880 level.
Looking at the 4-hour chart, the pair struggled to clear the 1.0870 and 1.0880 resistance levels. A high was formed near 1.0876 and the pair is now stuck near the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
On the upside, the pair is facing hurdles near 1.0880. There is also a major bearish trend line forming with resistance at 1.0875 on the same chart.
A clear move above the 1.0880 resistance could send the pair further higher. In the stated case, EUR/USD could rise toward the 1.0950 level.
Immediate support is near the 1.0820 level. The next major support is at 1.0785 or the 61.8% Fib retracement level of the upward move from the 1.0725 swing low to the 1.0876 high.
If there is a downside break below the 1.0785 support, the pair could decline toward the 1.0750 support. Any more losses might send the pair toward the 1.0720 level in the near term.
Looking at Gold, the bulls were able to push the price above the $2,300 level and it seems like they are now aiming for a test of $2,350.
Economic Releases
Euro Zone Sentix Investor Confidence for April 2024 – Forecast -9.9, versus -10.5 previous.
