Key Highlights
- EUR/USD is showing positive signs above the 1.0800 support.
- It is eyeing an upside break above the 1.0880 resistance on the 4-hour chart.
- Gold price took a hit and declined below $2,350.
- GBP/USD could gain bullish momentum if it clears the 1.2750 resistance.
EUR/USD Technical Analysis
The Euro remained well-bid above the 1.0800 level against the US Dollar. EUR/USD formed a base and started a fresh increase above the 1.0825 resistance.
Looking at the 4-hour chart, the pair even settled above the 200 simple moving average (green, 4-hour) and the 100 simple moving average (red, 4-hour). The pair spiked above the 50% Fib retracement level of the downside correction from the 1.0895 swing high to the 1.0804 low.
The pair is now attempting an upside break above a connecting bearish trend line with resistance at 1.0860. It is near the 61.8% Fib retracement level of the downside correction from the 1.0895 swing high to the 1.0804 low.
A clear move above the 1.0860 resistance might send it toward the 1.0900 level. Any more gains might call for a move toward the 1.0950 level in the near term.
If there is no move above the 1.0860 resistance, the pair might correct gains. Immediate support is near the 1.0820 level. The next major support is at 1.0800 and the 100 simple moving average (red, 4-hour).
If there is a downside break below the 1.0800 support, the pair might test the 200 simple moving average (green, 4-hour) at 1.0750. Any more losses might send the pair toward the 1.0720 level.
Looking at Gold, the bears pushed the price further lower and there was a move below the $2,350 support zone.
Economic Releases
- German IFO Business Climate Index for May 2024 – Forecast 90.3, versus 89.4 previous.
- German IFO Current Assessment Index for May 2024 – Forecast 89.9, versus 88.9 previous.
- German IFO Expectations Index for May 2024 – Forecast 90.5, versus 89.9 previous.
