EUR/USD falls again as momentum turns cautiously bearish
Key highlights
- EUR/USD started a downside correction from the 1.1800 zone.
- A key bearish trend line is forming with resistance at 1.1750 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair declined below the 1.1720 support level and the 100 simple moving average (red, 4-hour). It is now showing bearish signs below the last swing low of 1.1702. If the bears remain in action, the pair could continue to move down.
On the downside, there is key support at 1.1680 and the 200 simple moving average (green, 4-hour). A close below the 200 simple moving average (green, 4-hour) or 1.1660 might spark heavy bearish moves.
The first major support is 1.1620. The next support could be 1.1600, below which the bears might aim for a move toward 1.1550.
Immediate resistance sits near 1.1725. The first key hurdle is seen near 1.1750. There is also a key bearish trend line forming with resistance at 1.1750. A close above 1.1750 could open the doors for a move toward 1.1800. Any more gains could set the pace for a steady increase toward 1.1850.
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.
