Key highlights
- EUR/USD started a downside correction from the 1.1575 zone.
- A key bullish trend line is forming with support at 1.1250 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair traded below the 1.1500 support zone. There was a move below the 23.6% Fib retracement level of the upward move from the 1.0732 low to the 1.1573 high. However, the pair is still well above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
There is also a key bullish trend line forming with support at 1.1250 on the same chart. The trend line is near the 38.2% Fib retracement level of the upward move from the 1.0732 low to the 1.1573 high.
On the downside, immediate support sits near the 1.1300 level. The next key support sits near the 1.1260 level and the trend line. Any more losses could send the pair toward the 1.1200 level.
If there is a fresh increase, the pair could face resistance near the 1.1420 level. The next major resistance is near the 1.1450 zone. A close above the 1.1450 level could set the tone for another increase. In the stated case, the pair could even clear the 1.1500 resistance.
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