EUR/USD reclaims positive ground — Is this more than a bounce?
|Key highlights
- EUR/USD started a steady increase above 1.1650 and 1.1700.
- It could struggle to clear the 1.1800 resistance on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair cleared many hurdles near 1.1700. It settled above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). A new multi-week high was formed at 1.1762 before the pair started a consolidation phase.
There was a minor decline to the 23.6% Fib retracement level of the upward move from the 1.1615 swing low to the 1.1762 high. On the downside, there is key support at 1.1705.
The first major support is near the 50% Fib retracement level at 1.1688. The next support could be 1.1670, below which the bears might aim for a move toward the 100 simple moving average (red, 4-hour) at 1.1615.
Immediate resistance sits near 1.1765. The first key hurdle is seen near 1.1800. A close above 1.1800 could open the doors for a move toward 1.1850. Any more gains could set the pace for a steady increase toward 1.1880.
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