Key Highlights
- EUR/USD found support near the 1.0825 zone.
- It cleared a connecting bearish trend line with resistance at 1.0860 on the 4-hour chart.
- Crude oil prices could continue to move down toward $75.00.
- Bitcoin is rising and might soon test the $70,000 resistance.
EUR/USD Technical Analysis
The Euro started a downside correction from the 1.0950 zone against the US Dollar. EUR/USD dipped below 1.0900 before the bulls appeared.
Looking at the 4-hour chart, the pair tested the 1.0825 support zone and remained stable above the 200 simple moving average (green, 4-hour). A low was formed at 1.0825 and the pair is now rising. There was a move above a connecting bearish trend line with resistance at 1.0860.
The pair climbed above the 100 simple moving average (red, 4-hour). It is now testing the 38.2% Fib retracement level of the downward move from the 1.0948 swing high to the 1.0825 low.
On the upside, the pair could face resistance near the 1.0875 level. The next resistance sits at 1.0900 or the 61.8% Fib retracement level of the downward move from the 1.0948 swing high to the 1.0825 low.
The main hurdle sits at 1.0920. A clear move above the 1.0920 resistance might send it toward the 1.0950 level. Any more gains might open the doors for a test of the 1.1000 zone in the coming days.
Immediate support is near the 1.0845 level. The next major support is near the 1.0820 level. A downside break and close below the 1.0820 support zone could open the doors for more losses. In the stated case, EUR/USD might decline toward the 1.0750 level.
Looking at Bitcoin, the bulls came into action and they seem to be aiming for a test of the $70,000 resistance zone.
Economic Releases
- Dallas Fed Manufacturing Business Index for July 2024 – Forecast -15.0, versus -15.1 previous.
