EUR/USD bounce runs into trouble as resistance strikes back

Key highlights

• EUR/USD started a recovery wave and tested the 1.1675 resistance.
• An expanding triangle is forming with resistance at 1.1675 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair climbed above the 38.2% Fib retracement level of the downward move from the 1.1787 swing high to the 1.1576 low. However, the bears seem to be active near the key hurdle at 1.1675.

There is also an expanding triangle forming with resistance at 1.1675. It coincides with the 50% Fib retracement level of the downward move from the 1.1787 swing high to the 1.1576 low.

The pair is now trading below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). To continue higher, it must settle above 1.1675.

The next major resistance could be 1.1700. A close above 1.1700 could open doors for gains above 1.1750. In the stated case, the bulls could aim for a move to 1.1800.

On the downside, the pair could find bids near 1.1620. The first major support might be 1.1600. A close below 1.1600 might initiate a drop to 1.1550. Any more losses might open the doors for a drop toward the 1.1420 zone.