EUR/USD weakness returns as bulls fail to build momentum

Aayush Jindal TitanFX

Key highlights

EUR/USD started a fresh decline after it failed to recover above 1.1450.
The bulls face resistance near 1.1450 and 1.1475 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair cleared a connecting bearish trend line with resistance at 1.1370. The pair even surpassed the 23.6% Fib retracement level of the downward move from the 1.1622 swing high to the 1.1324 low.

However, the pair faced resistance near 1.1450. It is again moving lower and shows bearish signs below 1.1400, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).

If there is another recovery wave, EUR/USD could face resistance at 1.1420. The next major resistance might be 1.1450. A close above 1.1450 could open the doors for a larger increase. In the stated case, the bulls could aim for a move to 1.1475 and the 50% Fib retracement level of the downward move from the 1.1622 swing high to the 1.1324 low.

If the downside pressure builds, the pair could find bids near 1.1325. The first major support could be near 1.1300. A downside break and close below 1.1300 might send the pair toward 1.1250. Any more losses could open the doors for a test of 1.1200.

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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