EUR/USD nears a crucial barrier — Can bulls clear the way?

Key highlights

• EUR/USD started a fresh increase from the 1.1565 support.
• It traded above a bearish trend line with resistance at 1.1605 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair traded above a bearish trend line with resistance at 1.1605. There was a move above the 100 simple moving average (red, 4-hour), and the pair remained well above the 200 simple moving average (green, 4-hour).

The pair surpassed the 1.1620 resistance but failed near the 50% Fib retracement level of the downward move from the 1.1711 swing high to the 1.1566 low at 1.1640.

There was a minor pullback, but the pair remained well above 1.1565. If there is another decline, the pair might find bids near 1.1585. The first major support could be near 1.1565. A downside break and close below 1.1565 might start a major leg down. In the stated case, the bears could aim for a move to 1.1440.

On the upside, the bears could be active near 1.1640. The next major resistance might be 1.1675. A close above 1.1675 could start another steady increase. In the stated case, the bulls could aim for a move to 1.1710.