EUR/USD hits a wall — Can bulls break through?

Key highlights

• EUR/USD started a recovery wave above the 1.1550 resistance.
• A major bearish trend line is forming with resistance at 1.1595 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair traded above the 50% Fib retracement level of the downward move from the 1.1685 swing high to the 1.1499 swing low. The pair is now attempting to close above a major bearish trend line with resistance at 1.1595.

On the upside, an immediate resistance could be 1.1600 and the 100 simple moving average (red, 4-hour). The next major resistance might be 1.1615 and the 61.8% Fib retracement level of the downward move from the 1.1685 swing high to the 1.1499 swing low.

A close above 1.1615 could open doors for gains. The main hurdle for the bulls could be 1.1650 and the 200 simple moving average (green, 4-hour). If there is a close above 1.1650, the pair could rise toward the 1.1720 level.

If there is another decline, the pair might find bids near the 1.1550 level. The first major support might be near 1.1500. A close below 1.1500 could open the doors for a larger decline toward 1.1440. Any more losses might set the pace for a test of 1.1420.