EUR/USD dips as momentum shifts, path higher gets tough

Key highlights

• EUR/USD failed to extend gains and declined below 1.1700.
• A major bearish trend line is forming with resistance at 1.1705 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair settled below 1.1700, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even tested 1.1620. A low was formed at 1.1618, and the pair is now recovering some losses.

Immediate resistance sits near 1.1665 or the 23.6% Fib retracement level of the downward move from the 1.1807 swing high to the 1.1618 low. The first key hurdle is seen near 1.1690. 

There is also a major bearish trend line forming with resistance at 1.1705. A close above 1.1705 could open the doors for a move toward 1.1735 and the 100 simple moving average (red, 4-hour). 

Any more gains could set the pace for a steady increase toward 1.1800. If there is no break above 1.1705, there could be a bearish reaction. On the downside, immediate support is near the 1.1635 level. 

The first major area for the bulls might be near 1.1620. A close below 1.1620 might spark heavy bearish moves. The next support could be 1.1550, below which the bears might aim for a move toward 1.1520.