EUR/USD trapped below resistance — Can buyers force a breakout?

Aayush Jindal TitanFX

Key highlights

EUR/USD started a correction move from the 1.1650 resistance.
It faces key hurdles near 1.1635 and 1.1650 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair settled the 100 simple moving average (red, 4-hour) and tested the 200 simple moving average (green, 4-hour). A low was formed at 1.1569, and the pair started a consolidation phase.

On the upside, an immediate resistance could be near the 61.8% Fib retracement level of the downward move from the 1.1654 swing high to the 1.1569 low at 1.1620.

The next major resistance might be near the 100 simple moving average at 1.1635. The main hurdle could still be 1.1650. A close above 1.1650 could start another steady increase. In the stated case, the bulls could aim for a move to 1.1720.

If there is another drop, the pair might find bids near 1.1565. The first major support could be near 1.1515. A close below 1.1515 might accelerate the decline. In the stated case, the bears could aim for a move to 1.1440.

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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