EUR/USD resumes northbound move, hinting at continued strength
Key highlights
- EUR/USD started a decent increase above 1.1600.
- A key bullish trend line is forming with support at 1.1600 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair settled above 1.1600 and the 100 simple moving average (red, 4-hour). It even spiked above the 200 simple moving average (green, 4-hour). On the downside, there is a key bullish trend line forming with support at 1.1600.
On the upside, the pair faces resistance near the 1.1650 zone. The first key hurdle sits at 1.1675. A close above 1.1675 might send the pair higher toward 1.1720.
The next resistance could be 1.1750. Any more gains could set the pace for a steady increase toward 1.1800. On the downside, the pair might find support at 1.1600 and the trend line. The main support might be 1.1580 and the 100 simple moving average (red, 4-hour).
A close below 1.1580 could start a pullback toward 1.1560. Any more losses might open the doors for a test of 1.1520 in the coming sessions.
Author
Stephen Innes
SPI Asset Management
With more than 25 years of experience, Stephen has a deep-seated knowledge of G10 and Asian currency markets as well as precious metal and oil markets.
