Key Highlights
- EUR/USD failed to surpass 1.0765 and declined once again.
- A major bearish trend line is forming with resistance at 1.0710 on the 4-hour chart.
- GBP/USD declined heavily and traded below the 1.2680 support.
- Bitcoin price extended losses and traded below the $64,200 support.
EUR/USD Technical Analysis
The Euro failed to recover above the 1.0765 resistance against the US Dollar. EUR/USD started another decline and traded below the 1.0720 support.
Looking at the 4-hour chart, the pair settled below the 1.0720 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). It is now consolidating near the 1.0670 support zone.
On the upside, the pair is facing resistance near the 1.0710 level. There is also a major bearish trend line forming with resistance at 1.0710 on the same chart.
The first major resistance is near the 1.0720 level. A clear move above the 1.0720 resistance might send it toward the 1.0750 level. The main resistance is still near 1.0765. Any more gains might call for a move toward the 1.0820 level in the near term.
If not, the pair might dip again. Immediate support is near the 1.0670 level. The next major support is near the 1.0650 zone. A downside break and close below the 1.0650 support zone could open the doors for a larger decline. In the stated case, the pair could decline toward the 1.0550 level.
Looking at GBP/USD, the pair trimmed most gains and there was a bearish reaction below the 1.2680 support zone.
Economic Releases
- German IFO Business Climate Index for June 2024 – Forecast 89.7, versus 89.3 previous.
- German IFO Current Assessment Index for June 2024 – Forecast 88.4, versus 88.3 previous.
