EUR/USD finds relief, but gains may be narrow
Key highlights
- EUR/USD extended losses and tested the 1.1420 support.
- A few hurdles are forming near 1.1500 and 1.1525 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair settled below 1.1500, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). A low was formed at 1.1471, and the pair started a minor recovery wave.
The pair surpassed the 23.6% Fib retracement level of the downward move from the 1.1622 swing high to the 1.1417 low. If the pair continues to recover, it could face resistance near the 1.1500 handle.
The next major resistance could be 1.1525 or the 50% Fib retracement level of the downward move from the 1.1622 swing high to the 1.1417 low. A close above 1.1525 could open the doors for a larger increase. In the stated case, EUR/USD might aim for a test of 1.1580.
If there is a fresh decline, the pair might find support near 1.1420. The first major support could be near 1.1400. A downside break and close below 1.1400 might spark bearish moves. The main support could be near 1.1365, below which the bears could aim for a test of 1.1250.
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.
