EUR/USD downside risks persist as resistance blocks recovery
Key highlights
- EUR/USD started a consolidation phase above the 1.1160 support.
- A major bearish trend line is forming with resistance at 1.1220 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair recovered some points and climbed toward the 50% Fib retracement level of the downward move from the 1.1380 swing high to the 1.1160 low. However, the pair failed to recover above 1.1280.
It is also well below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). Besides, there is a major bearish trend line forming with resistance at 1.1220.
The first major resistance might be 1.1340 and the 100 simple moving average (red, 4-hour). A close above the 1.1340 pivot level could initiate a steady increase. If the bears remain active below 1.1220 or 1.1280, there might be a fresh decline.
Immediate support could be 1.1160. The first major support might be 1.1120. A close below 1.1120 might accelerate the decline. In the stated case, the pair might drop to 1.1040.
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.
