Key Highlights
- EUR/USD started a fresh decline below the 1.1000 support zone.
- A connecting bearish trend line is forming with resistance at 1.0945 on the 4-hour chart.
- GBP/USD extended losses and traded below the 1.3080 support.
- Gold started a consolidation phase near the $2,650 level.
EUR/USD Technical Analysis
The Euro started a fresh decline from the 1.1200 resistance against the US Dollar. EUR/USD traded below the 1.1120 and 1.1000 support levels to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below the 1.1000 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even tested the 1.0900 zone. A low was formed at 1.0900 and the pair is now consolidating losses.
On the downside, immediate support sits near the 1.0900 level. The next key support sits near the 1.0880 level. Any more losses could send the pair toward the 1.0850 level. Any more losses could send the pair toward the 1.0820 level.
On the upside, the bears might be active near the 1.0945 level. The first major resistance might be near the 1.0975 level. It is close to the 23.6% Fib retracement level of the downward move from the 1.1208 swing high to the 1.0900 low.
A close above the 1.0975 level could set the tone for another increase. The next major resistance could be 1.1020. A clear move above the 1.1020 level might send EUR/USD toward 1.1050. Any more gains might call for a test of the 1.1120 zone.
Looking at GBP/USD, the bears remained active and were able to push the pair below the 1.3120 and 1.3080 support levels.
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