EUR/USD pullback deepens – All eyes on this make-or-break support

Key highlights

• EUR/USD started a sharp downside correction from 1.1920.
• A major bullish trend line is in place with support at 1.1720 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair traded below the 1.1820 and 1.1800 support levels. There was a drop below the 50% Fib retracement level of the upward move from the 1.1658 swing low to the 1.1918 high.

The pair is now consolidating losses below 1.1780. On the downside, there is a key support at 1.1720 and the 100 simple moving average (red, 4-hour).

There is also a major bullish trend line in place with support at 1.1720 on the same chart. It is close to the 76.4% Fib retracement level of the upward move from the 1.1658 swing low to the 1.1918 high. The next key area of interest might be near 1.1680 and the 200 simple moving average (green, 4-hour).

The main support could be 1.1650. Any more losses might increase selling pressure and send EUR/USD toward 1.1565. On the upside, the pair could face resistance near the 1.1780 level.

The first major hurdle for the bulls could be 1.1800. A close above 1.1800 could set the pace for a steady recovery wave. In the stated case, the pair could rise toward 1.1840, above which the bulls could aim for a move toward 1.1880. Any more upsides could send the pair toward 1.1920.