Key Highlights
- EUR/USD seems to be finding bids near the 1.0675 level.
- A connecting bearish trend line is forming with resistance at 1.0760 on the 4-hour chart.
- GBP/USD trimmed gains and tested the 1.2660 support zone.
- USD/JPY spiked above 158.00 before correcting lower.
EUR/USD Technical Analysis
The Euro started a fresh decline from well above 1.0800 against the US Dollar. EUR/USD declined below the 1.0750 support before the bulls appeared.
Looking at the 4-hour chart, the pair tested the 1.0665 zone. It settled below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). A low was formed at 1.0667 and the pair is now consolidating losses.
It seems to be finding bids near the 1.0675 level. It is trading close to the 23.6% Fib retracement level of the downward move from the 1.0852 swing high to the 1.0667 low.
The first major resistance is near the 1.0730 level. There is also a connecting bearish trend line forming with resistance at 1.0760. A clear move above the 1.0760 resistance might send it toward the 1.0800 level. Any more gains might call for a move toward the 1.0850 level in the near term.
If not, the pair might dip again. Immediate support is near the 1.0680 level. The next major support is near the 1.0665 zone. A downside break and close below the 1.0665 support zone could open the doors for a larger decline. In the stated case, the pair could decline toward the 1.0620 level.
Looking at GBP/USD, the pair extended gains toward the 1.2840 resistance zone before there was a pullback to the 1.2660 support zone.
Economic Releases
- NY Empire State Manufacturing Index for June 2024 – Forecast -13.0, versus -15.6 previous.
