EUR/USD Retreats From Highs, Can It Bounce Back

Key Highlights

• The Euro failed to gain momentum above 1.1350 and trimmed most gains against the US Dollar.

• EUR/USD traded below a connecting bullish trend line with support near 1.1280 on the 4-hours chart.

EURUSD Technical Analysis

Looking at the 4-hours chart, the pair topped near 1.1347 and declined below the 50% Fib retracement level of the upward move from the 1.1116 swing low to 1.13487 high.

Moreover, the pair traded below a connecting bullish trend line with support near 1.1280 on the same chart. The pair even broke the 1.1250 support level and the 100 simple moving average (red, 4-hours).

It tested the 1.1200 support area and the 61.8% Fib retracement level of the upward move from the 1.1116 swing low to 1.13487 high. If the pair settles below 1.1200, there are chances of a sharp decline below the 1.1180 and 1.1170 support levels.

The next key supports are near 1.1150 and 1.1140. Conversely, if the pair stays above 1.1200, it could consolidate in the short term before a fresh increase.

An initial resistance is near the 1.1240 level. If there is a successful close above 1.1250 plus the 100 simple moving average (red, 4-hours), then the pair will most likely revisit the 1.1300 level.