Key Highlights
- EUR/USD started a consolidation phase from the 1.0515 resistance.
- A key bullish trend line is forming with support at 1.0420 on the 4-hour chart.
- GBP/USD is showing positive signs above the 1.2560 support.
- Crude oil prices declined below the $71.50 and $70.50 support levels.
EUR/USD Technical Analysis
The Euro started a decent increase above 1.0400 against the US Dollar. EUR/USD tested the 1.0515 resistance before the bears appeared.
Looking at the 4-hour chart, the pair settled above the 1.0420 support, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair started a consolidation phase and corrected some gains below 1.0480.
On the downside, immediate support sits near the 1.0420 level. There is also a key bullish trend line forming with support at 1.0420 on the same chart.
The next key support sits near the 1.0395 level and the 100 simple moving average (red, 4-hour). The main support could be 1.0365. Any more losses could send the pair toward the 1.0300 level.
On the upside, the pair seems to be facing hurdles near the 1.0515 level. The next major resistance is near the 1.0530 level. The main resistance is now forming near the 1.0550 zone. A close above the 1.0550 level could set the tone for another increase. In the stated case, the pair could even clear the 1.0620 resistance.
Looking at GBP/USD, the pair remained stable above 1.2560 and might aim for more gains above the 1.2650 resistance.
Upcoming Economic Events:
- Euro Zone CPI for Jan 2025 (YoY) – Forecast +2.5%, versus +2.5% previous.
- Euro Zone CPI for Jan 2025 (MoM) – Forecast -0.3%, versus -0.3% previous.
