EUR/USD recovery stumbles at resistance, leaving bulls on alert

Aayush Jindal TitanFX

Key highlights

EUR/USD started a recovery wave and climbed to test 1.1450.
A rising channel or a possible bearish pennant is forming with resistance at 1.1500 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair failed to clear the 50% Fibonacci retracement level of the downward move from the 1.1622 swing high to the 1.1324 low. It also struggled to settle above the 100 simple moving average (red, 4-hour) and remained well below the 200 simple moving average (green, 4-hour).

If there is a fresh decline, the pair might find support near 1.1380. The first major support could be near 1.1350. A downside break and close below 1.1350 might send the pair toward 1.1325. Any more losses could open the doors for a test of 1.1280.

On the upside, the bears might remain active near 1.1475. The next major resistance might be 1.1500. There is also a rising channel or a possible bearish pennant forming with resistance at 1.1500.

A close above the channel resistance could decrease selling pressure. In the stated case, the bulls could aim for a move to 1.1580.

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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