EUR/USD uptrend pauses as buyers digest strong gains

Key highlights

• EUR/USD started a major increase and climbed above 1.1620.
• A bullish trend line is forming with support near 1.1610 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair settled above 1.1600, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair climbed above 1.1700 and traded as high as 1.1711 on TitanFX before it started a consolidation phase.

If there is a downside correction, the pair might find bids near 1.1635. The first major support could be near 1.1610 and the 50% Fib retracement level of the upward move from the 1.1511 swing low to the 1.1711 high.

There is also a bullish trend line forming with support at 1.1610. The next major support could be near 1.1560 and the 100 simple moving average (red, 4-hour).

The main support might be 1.1500 and the 200 simple moving average (green, 4-hour). A downside break and close below 1.1500 might send the pair toward 1.1420. Any more losses could open the door for a test of 1.1350.

On the upside, the pair is now facing a major hurdle at 1.1700. The next major resistance might be 1.1725. A close above 1.1725 could start another steady increase. In the stated case, the bulls could aim for a move to 1.1800. Any further gains might open the door for a test of 1.1880.