Key Highlights
- EUR/USD corrected gains and tested the 1.0735 support zone.
- It broke a key bearish trend line with resistance at 1.0805 on the 4-hour chart.
- GBP/USD started a consolidation phase above the 1.2880 support.
- Gold prices rallied further above the $3,080 level.
EUR/USD Technical Analysis
The Euro failed to continue higher above the 1.0950 resistance against the US Dollar. EUR/USD corrected gains and tested 1.0735 before the bulls appeared.
Looking at the 4-hour chart, the pair traded as low as 1.0732 and settled below the 100 simple moving average (red, 4-hour). However, it remained stable above the 200 simple moving average (green, 4-hour).
The pair is now forming a base and might attempt a fresh increase. It cleared a key bearish trend line with resistance at 1.0805 on the same chart.
On the upside, the pair is facing resistance near the 1.0850 level and the 100 simple moving average (red, 4-hour). The next major resistance is near the 1.0870 level. The main resistance is now forming near the 1.0900 zone.
A close above the 1.0900 level could set the tone for another increase. In the stated case, the pair could even clear the 1.0920 resistance.
On the downside, immediate support sits near the 1.0765 level. The next key support sits near the 1.0735 level. Any more losses could send the pair toward the 1.0680 level.
Looking at GBP/USD, the pair corrected gains, tested 1.2880, and might soon attempt a fresh increase in the near term.
Upcoming Economic Events:
- German Consumer Price Index for March 2025 (YoY) (Prelim) – Forecast +2.2%, versus +2.3% previous.
- Chicago Purchasing Managers Index for March 2025 – Forecast 45.4, versus 45.5 previous.
