Key Highlights
- EUR/USD started a consolidation phase below the 1.0900 resistance.
- A major bullish trend line is forming with support at 1.0820 on the 4-hour chart.
- Gold prices are still consolidating above the $2,320 support zone.
- GBP/USD might continue to rise unless there is a close below 1.2650.
EUR/USD Technical Analysis
The Euro remained in a positive zone above the 1.0780 pivot level against the US Dollar. EUR/USD gained pace for a move above 1.0850 but struggled near 1.0900.
Looking at the 4-hour chart, the pair started a consolidation phase above the 1.0820 level. There is also a major bullish trend line forming with support at 1.0820. The main support seems to be forming near the 1.0800 level.
A downside break and close below the 1.0800 support zone could open the doors for a larger decline. In the stated case, the pair could decline toward the 1.0750 level.
On the upside, immediate resistance is near the 1.0890 zone. The first major resistance is near the 1.0900 level. A clear move above the 1.0900 resistance might send it toward the 1.0935 level. Any more gains might call for a move toward the 1.0950 level in the near term.
Looking at GBP/USD, the pair is holding gains above a couple of important support levels and might continue to rise in the near term.
Economic Releases
- Germany’s Manufacturing PMI for May 2024 – Forecast 45.4, versus 45.4 previous.
- Euro Zone Manufacturing PMI for May 2024 – Forecast 47.4, versus 47.6 previous.
- US Manufacturing PMI for May 2024 – Forecast 50.9, versus 50.9 previous.
- US ISM Manufacturing Index for May 2024 – Forecast 49.8, versus 49.2 previous.
