EUR/USD slides further, recovery hopes start to thin

Key highlights

• EUR/USD started a fresh decline below 1.1700 and 1.1650.
• A major bearish trend line is forming with resistance at 1.1665 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair declined below 1.1650 and even spiked below 1.1660. A low was formed at 1.1577, and the pair is now trading well below the 200 simple moving average (green, 4-hour) and the 100 simple moving average (red, 4-hour).

Immediate resistance sits near 1.1630. It is close to the 23.6% Fib retracement level of the downward move from the 1.1807 swing high to the 1.1577 low.

The first key hurdle is seen near 1.1665. There is also a major bearish trend line forming with resistance at 1.1665. A close above 1.1665 could open the doors for a move toward 1.1700. Any more gains could set the pace for a steady increase toward 1.1750.

If there is no move above 1.1665, there could be a bearish reaction. On the downside, immediate support is near the 1.1600 level. The first major area for the bulls might be near 1.1575.

A close below 1.1575 might spark heavy bearish moves. The next support could be 1.1520, below which the bears might aim for a move toward 1.1450.