Key Highlights
- EUR/USD started a steady increase and surpassed the 1.0910 resistance.
- A key bullish trend line is forming with support at 1.0870 on the 4-hour chart.
- GBP/USD is correcting gains from the 1.3050 resistance zone.
- Oil prices extended losses and declined below the $80.50 level.
EUR/USD Technical Analysis
The Euro remained in a positive zone above the 1.0850 level against the US Dollar. EUR/USD climbed above the 1.0910 resistance to move into a bullish zone.
Looking at the 4-hour chart, the pair tested the 1.0950 level, and settled above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). The pair tested the 1.0950 resistance zone and is currently correcting gains.
There was a drop below the 1.0910 level. The pair is now testing the 23.6% Fib retracement level of the upward move from the 1.0660 swing low to the 1.0948 high.
There is also a key bullish trend line forming with support at 1.0870 on the same chart. If there is a fresh increase, the pair could face resistance near the 1.0910 level. The next resistance sits at 1.0920. The main hurdle sits at 1.0950.
A clear move above the 1.0950 resistance might send it toward the 1.0980 level. Any more gains might open the doors for a test of the 1.1050 zone in the coming days.
Immediate support is near the 1.0870 level and the trend line. The next major support is near the 1.0850 level. A downside break and close below the 1.0850 support zone could open the doors for more losses. In the stated case, EUR/USD might decline toward the 1.0820 level.
Looking at Oil, there was a fresh bearish reaction and the bears were able to push the price below the $80.50 level.
Economic Releases
- Eurogroup Meeting.
- German Buba Monthly Report.
