EUR/USD Facing Resistance Near 1.2160
|Key Highlights
- EUR/USD found support near 1.2060 and corrected higher.
- It is facing resistance near 1.2160 and 1.2200 on the 4-hours chart.
EUR/USD Technical Analysis
Looking at the 4-hours chart, the pair traded as low as 1.2059, and settled below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
It started a decent recovery and cleared the 1.2120 resistance. There was also a break above the 50% Fib retracement level of the downward move from the 1.2189 high to 1.2059 low.
However, the pair seems to be facing a couple of important hurdles, starting with 1.2160 and a connecting bearish trend line on the same chart.
The next major resistance is near the 1.2200 or the 200 simple moving average (green, 4-hours). A close above the trend line resistance and 1.2200 could open the doors for a decent increase in the coming sessions.
Conversely, EUR/USD could fail to continue above 1.2160 or 1.2200. In the stated case, there is a risk of a fresh decline towards the 1.2060 support zone.
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