EUR/USD could extend gains unless this support fails

Key highlights

• EUR/USD started a decent increase and climbed above 1.0750.
• A key bullish trend line is forming with support at 1.0700 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair surpassed the 50% Fib retracement level of the downward move from the 1.0885 swing high to the 1.0601 low. It also settled above the 100 simple moving average (red, 4-hour) and tested the 200 simple moving average (green, 4-hour).

The bears are now active near the 1.0800 level. The first major resistance is near 1.0820 or the 76.4% Fib retracement level of the downward move from the 1.0885 swing high to the 1.0601 low.

A clear move above the 1.0820 resistance might send it toward the 1.0865 level. Any more gains might call for a move toward the 1.0920 level in the near term.

Immediate support is near the 1.0740 level and the 200 simple moving average (green, 4-hour). The next major support is at 1.0720. There is also a key bullish trend line forming with support at 1.0700 on the same chart.

If there is a downside break below the 1.0720 support, the pair might test 1.0665. Any more losses might send the pair toward 1.0600.