Key Highlights
- EUR/USD started a recovery wave above the 1.0710 resistance.
- It cleared a major bearish trend line with resistance at 1.0725 on the 4-hour chart.
- GBP/USD is facing resistance near the 1.2680 zone.
- The US ISM Manufacturing Index could remain below 50.0 at 49.0 in June 2024.
EUR/USD Technical Analysis
The Euro started a decent recovery wave from the 1.0665 zone against the US Dollar. EUR/USD cleared the 1.0710 resistance to move into a short-term positive zone.
Looking at the 4-hour chart, the pair cleared a major bearish trend line with resistance at 1.0725. There was a move above the 38.2% Fib retracement level of the downward move from the 1.0852 swing high to the 1.0666 low.
However, the pair is now facing resistance near the 1.0760 zone and the 100 simple moving average (red, 4-hour). The 50% Fib retracement level of the downward move from the 1.0852 swing high to the 1.0666 low is also acting as a resistance.
The next resistance sits at 1.0800 and the 200 simple moving average (green, 4-hour). A clear move above the 1.0800 resistance might send it toward the 1.0850 level.
Any more gains might open the doors for a test of the 1.0920 zone in the coming days. Immediate support is near the 1.0730 level. The next major support is near the 1.0700 level. A downside break and close below the 1.0700 support zone could open the doors for a larger decline. In the stated case, the pair could decline toward the 1.0665 level.
Looking at GBP/USD, the pair remained stable above the 1.2600 support zone but faces many hurdles near the 1.2680 zone.
Economic Releases
- Euro Zone Manufacturing PMI for June 2024 – Forecast 45.6, versus 45.6 previous.
- UK Manufacturing PMI for June 2024 – Forecast 51.4, versus 51.4 previous.
- US ISM Manufacturing Index for June 2024 – Forecast 49.0, versus 48.7 previous.
