EUR/USD recovery faces a tough climb from current levels

Aayush Jindal TitanFX

Key highlights

EUR/USD started a recovery wave and tested the 1.1475 resistance.
A rising channel is forming with support at 1.1395 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair was able to surpass the 38.2% Fibonacci retracement level of the downward move from the 1.1672 swing high to the 1.1324 low. However, the bears remained active near the 1.1675 resistance and the 100 simple moving average (red, 4-hour).

The pair also faced rejection near the 50% Fib retracement level and started a fresh pullback. If there is another decline, the pair might find support near 1.1400.

Besides, there is a rising channel forming with support at 1.1395. The first major support could be near 1.1365. A downside break and close below 1.1365 might send the pair toward 1.1320. Any more losses could open the doors for a test of 1.1250.

On the upside, the bears might remain active near 1.1475. The next major resistance might be 1.1500. A close above 1.1500 could open the doors for a larger increase. In the stated case, the bulls could aim for a move to the 200 simple moving average (green, 4-hour) at 1.1540.

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.

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