EUR/USD hits heavy resistance, sparking questions over bullish continuation
|Key highlights
- EUR/USD started a decent increase above the 1.1550 resistance.
- A key bearish trend line is forming with resistance at 1.1600 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair climbed above the 50% Fib retracement level of the downward move from the 1.1656 swing high to the 1.1491 low. The pair settled above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
However, the bears are protecting gains above 1.1600. There is also a key bearish trend line forming with resistance at 1.1600. The first key hurdle sits at 1.1610 and the 76.4% Fib retracement level of the downward move from the 1.1656 swing high to the 1.1491 low.
The next area of interest for the bulls could be 1.1650. Any more gains could set the pace for a steady increase toward 1.1700.
On the downside, there is key support at 1.1575. The next support is 1.1550, below which the pair could start a steady decline to 1.1500.
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