Key Highlights
- EUR/USD started a recovery wave from the 1.0350 zone.
- A key bearish trend line is forming with resistance near 1.0450 on the 4-hour chart.
- GBP/USD is facing hurdles near the 1.2650 and 1.2720 levels.
- Bitcoin and Ethereum gained bearish pace and declined below key support levels.
EUR/USD Technical Analysis
The Euro traded as low as 1.0343 before it started a recovery wave against the US Dollar. EUR/USD climbed above the 1.0380 and 1.0400 resistance levels.
Looking at the 4-hour chart, the pair even cleared the 23.6% Fib retracement level of the downward move from the 1.0629 swing high to the 1.0343 low. However, the pair is still below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
There is also a key bearish trend line forming with resistance near 1.0450 on the same chart. The trend line is close to the 38.2% Fib retracement level of the downward move from the 1.0629 swing high to the 1.0343 low.
On the upside, the pair could face resistance near the 1.0450 level. The next major resistance is near the 1.0475 level. A close above the 1.0475 level could set the tone for another increase.
The next major resistance could be the 1.0520 level, above which the price could climb higher toward the 1.0580 resistance. On the downside, immediate support sits near the 1.0400 level.
The next key support sits near the 1.0380 level. Any more losses could send the pair toward the 1.0350 level. Any more losses might send the pair toward the 1.0300 level.
Looking at Bitcoin, the bears took control, and they succeeded in closing the price below the key support at $100,000.
Upcoming Economic Events:
- UK GDP for Q3 2016 (Preliminary) (QoQ) – Forecast +0.1%, versus +0.1% previous.
- UK GDP for Q3 2016 (Preliminary) (YoY) – Forecast +1%, versus +1% previous.
