EUR/USD rebound faces a reality check at resistance

Key highlights

• EUR/USD found support at 1.1115 and recovered some losses.
• It cleared a bearish trend line with resistance at 1.1190 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair cleared a bearish trend line with resistance at 1.1190. There was a move above the 23.6% Fib retracement level of the downward move from the 1.1556 swing high to the 1.1113 low.

However, the bears were active near the 100 simple moving average (red, 4-hour) and 1.1275. If there is a close above the 100 simple moving average, the pair could stage a comeback.

The first major resistance might be near the 61.8% Fib retracement level at 1.1387 or the 200 simple moving average (green, 4-hour) at 1.1400. A close above the 1.1400 pivot level could start a steady increase. In the stated case, the pair might even surpass 1.1500.

If there is no close above the 100 simple moving average, the pair might start another decline. Immediate support could be 1.1150. The first major support might be 1.1115. A close below 1.1115 might accelerate the decline. In the stated case, the pair might drop to 1.1020.