Key Highlights
- EUR/USD started a fresh decline below the 1.0350 level.
- A key bearish trend line is forming with resistance at 1.0400 on the 4-hour chart.
- GBP/USD is consolidating losses near the 1.2420 level.
- Bitcoin is slowly moving higher above the $98,000 resistance level.
EUR/USD Technical Analysis
The Euro failed to settle above the 1.0420 level against the US Dollar. EUR/USD extended losses below the 1.0380 and 1.0350 levels.
Looking at the 4-hour chart, the pair settled below the 1.0350 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even declined below the 1.0300 support zone.
A low was formed at 1.0223 and the pair is now attempting a recovery wave. There was a minor increase above the 1.0275 level. The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.0458 swing high to the 1.0223 low.
On the upside, the pair is facing hurdles near the 1.0350 level. The first major resistance is near the 1.0380 level. There is also a key bearish trend line forming with resistance at 1.0400 on the same chart.
The next major resistance is near the 1.0420 level. A close above the 1.0420 level could set the tone for another increase. In the stated case, the pair could rise toward the 1.0500 resistance.
On the downside, immediate support sits near the 1.0275 level. The next key support sits near the 1.0250 level. Any more losses could send the pair toward the 1.0220 level.
Looking at GBP/USD, the pair is now correcting some losses but it might face resistance near the 1.2450 level.
Upcoming Economic Events:
- Euro Zone Services PMI for Dec 2024 – Forecast 51.4, versus 51.4 previous.
- UK Services PMI for Dec 2024 – Forecast 51.4, versus 51.4 previous.
- US Services PMI for Dec 2024 – Forecast 58.5, versus 58.5 previous.
