EUR/USD could climb again if it holds 1.0860

Aayush Jindal TitanFX

EUR/USD traded as high as 1.1007 before starting a downside correction.

A major bullish trend line is forming with support near 1.0865 on the 4-hours chart.

EUR/USD Technical Analysis

Looking at the 4-hours chart, the pair traded as high as 1.1007 before it declined below 1.0950. There was a break below the 38.2% Fib retracement level of the upward move from the 1.0774 low to 1.1007 high.

However, the pair is now approaching a major support zone near 1.0880 and 1.0860. The 50% Fib retracement level of the upward move from the 1.0774 low to 1.1007 high is also at 1.0890.

More importantly, there is a major bullish trend line forming with support near 1.0865. The trend line is close to the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

If the pair fails to stay above 1.0880 and 1.0860, it could continue to move down. The next major support is near the 1.0800 level.

Conversely, EUR/USD could start a fresh increase above the 1.0940 and 1.0950 resistance levels. The main resistance on the upside above 1.0950 is near the 1.1000-1.1020 zone.

Author

Aayush Jindal

TitanFX

I have spent over six years as a financial markets contributor and observer, and possess strong technical analytical skills. I am a software engineer by profession, loves blogging and observing financial markets.

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