Key Highlights
- EUR/USD struggled to recover above the 1.0900 resistance zone.
- A connecting trend line is forming with resistance at 1.0900 on the 4-hour chart.
- GBP/USD is signaling a bearish bias below the 1.3050 resistance.
- Gold corrected gains and traded below $2,750.
EUR/USD Technical Analysis
The Euro started an upside correction above the 1.0820 level against the US Dollar. EUR/USD even climbed above 1.0880 but failed near 1.0900.
Looking at the 4-hour chart, the pair traded above the 23.6% Fib retracement level of the downward move from the 1.1208 swing high to the 1.0761 low. However, the bears were active near 1.0900 and the pair remained well below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
The pair is again declining and trading below 1.0880. On the downside, immediate support sits near the 1.0780 level. The next key support sits near the 1.0760 level.
Any more losses could send the pair toward the 1.0720 level. On the upside, the pair could face resistance near the 1.0900 level. The first key resistance is near the 1.0920 level. A close above the 1.0920 level could set the tone for another increase.
The next major resistance could be 1.0950, above which the price could accelerate higher toward the 1.0980 resistance.
Looking at Gold, the price started a downside correction after trading to a new all-time high and traded below $2,740.
Upcoming Economic Events:
- Euro Zone Manufacturing PMI for Oct 2024 – Forecast 45.9, versus 45.9 previous.
- German Manufacturing PMI for Oct 2024 – Forecast 42.6, versus 42.6 previous.
