EUR/USD eyes recovery but faces uphill task
|Key highlights
- EUR/USD started a recovery wave from the 1.0600 zone.
- A key bullish trend line is forming with support at 1.0680 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair traded as low as 1.0598 and recently started a recovery wave. There was a move above the 1.0650 and 1.0680 resistance levels. The pair even tested the 50% Fib retracement level of the downward move from the 1.0885 swing high to the 1.0598 low.
However, the bears seem to be active near the 1.0740 level. EUR/USD is now consolidating near the 100 simple moving average (red, 4-hour).
Immediate resistance is near the 1.0740 level. The first key resistance is near the 1.0775 zone and the 200 simple moving average (green, 4-hour). It is close to the 61.8% Fib retracement level of the downward move from the 1.0885 swing high to the 1.0598 low.
A clear move above the 1.0775 resistance could send the pair further higher. In the stated case, EUR/USD bulls could even aim for a move toward 1.0850.
Immediate support is near the 1.0680 level. There is also a key bullish trend line forming with support at 1.0680 on the same chart. The next major support is at 1.0620. If there is a downside break below the 1.0620 support, the pair might test 1.0600. The main support is now forming at 1.0580. Any more losses might send the pair toward 1.0520.
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