Key Highlights
- EUR/USD started a fresh decline from the 1.0530 resistance.
- It traded below a major bullish trend line with support at 1.0470 on the 4-hour chart.
- GBP/USD also corrected gains and traded below 1.2640.
- The US ISM Manufacturing Index could dip from 50.9 to 50.8 in Feb 2025.
EUR/USD Technical Analysis
The Euro started a fresh increase above the 1.0450 and 1.0500 levels against the US Dollar. However, EUR/USD failed to clear 1.0535.
Looking at the 4-hour chart, the pair formed a top near 1.0530 and started a fresh decline. There was a move below the 1.0500 and 1.0480 levels. The pair dipped below a major bullish trend line with support at 1.0470.
The pair settled below the 100 simple moving average (red, 4-hour) and spiked below the 200 simple moving average (green, 4-hour). There was a test of the 50% Fib retracement level of the upward move from the 1.0210 swing low to the 1.0528 high.
On the upside, the pair seems to be facing hurdles near the 1.0420 level. The next major resistance is near the 1.0450 level. The main resistance is now forming near the 1.0465 zone.
A close above the 1.0465 level could set the tone for another increase. In the stated case, the pair could even clear the 1.0500 resistance.
On the downside, immediate support sits near the 1.0365 level. The next key support sits near the 1.0350 level. Any more losses could send the pair toward the 1.0320 level.
Looking at GBP/USD, the pair failed to gain pace for a move above the 1.02700 resistance and corrected some gains.
Upcoming Economic Events:
- Euro Zone Manufacturing PMI for Feb 2025 – Forecast 47.3, versus 47.3 previous.
- UK Manufacturing PMI for Feb 2025 – Forecast 46.4, versus 46.4 previous.
- US ISM Manufacturing Index for Feb 2025 – Forecast 50.8, versus 50.9 previous.
