Key Highlights
- EUR/USD started a fresh increase from the 1.0775 support zone.
- It broke a key bearish trend line with resistance at 1.0820 on the 4-hour chart.
- GBP/USD is attempting to recover above the 1.2820 resistance.
- Bitcoin and Ethereum declined heavily below $60,000 and $2,500 respectively.
EUR/USD Technical Analysis
The Euro found support near the 1.0775 level against the US Dollar. EUR/USD formed a base and started a fresh increase above the 1.0820 resistance zone.
Looking at the 4-hour chart, the pair climbed above the 1.0840 level, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour). It broke a key bearish trend line with resistance at 1.0820.
The pair even surpassed the 61.8% Fib retracement of the downward move from the 1.0948 swing high to the 1.0775 low. The pair is now showing positive signs above the 1.0900 level.
Immediate resistance sits near the 1.0935 level. The next resistance sits at 1.0950. A clear move above 1.0950 could open the door to more gains. In the stated case, the pair could rise and test 1.1050.
Immediate support is near the 1.0880 level. 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, GBP/USD might decline toward the 1.0820 level.
Looking at Bitcoin, the bears took control amid heavy selling and the price declined heavily below the $60,000 zone.
Economic Releases
- Euro Zone Services PMI for July 2024 – Forecast 51.9, versus 51.9 previous.
- UK Services PMI for July 2024 – Forecast 52.4, versus 52.4 previous.
- US Services PMI for July 2024 – Forecast 56.0, versus 56.0 previous.
- US ISM Services Index for July 2024 – Forecast 51.0, versus 48.8 previous
