EUR/USD trims gains: Why traders fear recovery will stall quickly
Key Highlights
- EUR/USD started a fresh decline from the 1.1920 resistance.
- A major bearish trend line is forming with resistance near 1.1750 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair settled below the 1.1750 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). A low was formed at 1.1645 and the pair is now attempting to recover.
There was a minor increase above the 1.1680 level. On the upside, the pair could face resistance near the 1.1735 level. The first major hurdle for the bulls could be 1.1750 since it coincides with the 38.2% Fib retracement level of the downward move from the 1.1918 swing high to the 1.1645 low.
There is also a major bearish trend line forming with resistance near 1.1750 on the same chart. A close above 1.1750 could set the pace for another rally. In the stated case, the pair could rise toward 1.1815, above which the bulls could aim for a move toward 1.1850. Any more upsides could send the pair toward 1.1920.
On the downside, there is a key support at 1.1650. The next area of interest might be 1.1600. The main support could be 1.1550. Any more losses might increase selling pressure and send EUR/USD toward 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.
