EUR/USD hits a key juncture – Recovery or next bearish leg

Aayush Jindal TitanFX

Key highlights

EUR/USD started a fresh decline and traded below 1.1550.
A bearish trend line is forming with resistance at 1.1515 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 1.1455, and the pair started a consolidation phase.

On the upside, the pair could face resistance near a bearish trend line at 1.1515. The next major resistance might be near the 50% Fib retracement level of the downward move from the 1.1654 swing high to the 1.1455 low.

The main resistance could be near the confluence of the 100 simple moving average and the 200 simple moving average at 1.1590. A close above 1.1590 could start another steady increase. In the stated case, the bulls could aim for a move to 1.1650.

If there is another bearish reaction, the pair could revisit 1.1455. The first major support could be near 1.1420. A close below 1.1420 might accelerate the decline. In the stated case, the bears could aim for a move to 1.1350.

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.

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