Key Highlights
- EUR/USD started a major decline below the 1.0780 support.
- It traded below a key bullish trend line with support at 1.0850 on the 4-hour chart.
- Iran launched more than 300 drones and missiles at Israel in an unprecedented attack late Saturday.
- Gold prices rallied above $2,400 before there was a sharp downside correction.
EUR/USD Technical Analysis
The Euro faced an increase in selling pressure from 1.0880 against the US Dollar. EUR/USD traded below the 1.0850 and 1.0820 support levels.
Looking at the 4-hour chart, the pair traded below a key bullish trend line with support at 1.0850. Recently, Iran launched more than 300 drones and missiles at Israel. It escalated tensions and sparked a strong buying interest among safe havens like the US Dollar.
EUR/USD dived below the 1.0750 and 1.0720 support levels. It even settled below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
Immediate support is near the 1.0620 level. The next major support is at 1.0580. If there is a downside break below the 1.0580 support, the pair could decline toward the 1.0550 support. Any more losses might send the pair toward the 1.0520 level in the near term.
On the upside, the pair is facing hurdles near 1.0685. The first key resistance is near the 1.0720 zone. A clear move above the 1.0720 resistance could send the pair further higher. In the stated case, EUR/USD could rise toward the 1.0800 level.
Looking at Gold, the price rallied further above the $2,400 level before the bears appeared and sparked a sharp decline.
Economic Releases
- US Retail Sales for March 2024 (MoM) – Forecast +0.3%, versus +0.6% previous.
