EUR/USD pulls back: Limited room for further decline
Key highlights
- EUR/USD started a downside correction from the 1.0950 resistance zone.
- It traded below a key bullish trend line with support at 1.0880 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair traded below a key bullish trend line with support at 1.0880. There was a move below the 1.0880 support, but the pair is still well above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
The pair tested the 1.0800 zone and started a consolidation. On the upside, the pair is facing resistance near the 1.0840 level. The next major resistance is near the 1.0860 level.
The main resistance is now forming near the 1.0895 zone. A close above the 1.0895 level could set the tone for another increase. In the stated case, the pair could even clear the 1.0920 resistance.
On the downside, immediate support sits near the 1.0795 level. The next key support sits near the 1.0765 level. Any more losses could send the pair toward the 1.0750 level.
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.
