Key Highlights
- EUR/USD started a decent increase above the 1.0400 resistance.
- A connecting bullish trend line is forming with support at 1.0430 on the 4-hour chart.
- GBP/USD gained pace for a move above the 1.2400 resistance.
- USD/JPY is consolidating below the 156.50 resistance.
EUR/USD Technical Analysis
The Euro found support and started a recovery wave above 1.0350 against the US Dollar. EUR/USD climbed above 1.0400 to move into a short-term positive zone.
Looking at the 4-hour chart, the pair was able to surpass 1.0450, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour). Finally, it tested the 1.0520 resistance zone.
A high was formed at 1.0521 and the pair is now correcting some gains. There was a move below the 1.0500 level. On the downside, immediate support sits near the 1.0445 level or the 50% Fib retracement level of the upward move from the 1.0372 swing low to the 1.0521 high.
The next key support sits near the 1.0430 level. There is also a connecting bullish trend line forming with support at 1.0430 on the same chart. Any more losses could send the pair toward the 1.0400 level.
On the upside, the pair seems to be facing hurdles near the 1.0500 level. The next major resistance is near the 1.0520 level. A close above the 1.0520 level could set the tone for another increase. In the stated case, the pair could even clear the 1.0580 resistance.
Looking at GBP/USD, the pair started a short-term recovery wave but the bears might remain active near the 1.2500 resistance.
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