Key Highlights
- EUR/USD started a fresh increase above the 1.0400 resistance.
- A key bullish trend line is forming with support at 1.0380 on the 4-hour chart.
- GBP/USD climbed higher above the 1.2450 and 1.2500 resistance levels.
- Gold prices started a downside correction from the $2,940 resistance zone.
EUR/USD Technical Analysis
The Euro formed a base and started a fresh increase against the US Dollar. EUR/USD surpassed the 1.0400 and 1.0420 resistance levels.
Looking at the 4-hour chart, the pair settled above the 1.0420 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). However, the bears are still active below the 1.0520 and 1.0535 resistance levels.
On the downside, immediate support sits near the 1.0420 level. It is near the 38.2% Fib retracement level of the upward move from the 1.0273 swing low to the 1.0514 high.
The next key support sits near the 1.0400 level. There is also a key bullish trend line forming with support at 1.0380 on the same chart. It is close to the 50% Fib retracement level of the upward move from the 1.0273 swing low to the 1.0514 high.
Any more losses could send the pair toward the 1.0340 level. On the upside, the pair seems to be facing hurdles near the 1.0520 level. The next major resistance is near the 1.0535 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 started a strong increase above the 1.2450 resistance and might aim for more gains above the 1.2620 level in the near term.
Upcoming Economic Events:
- Fed’s Harker speech.
- Fed’s Bowman speech.
- Fed’s Waller speech.
