EUR/USD Technical Analysis: Trims a part of early strong gains to 4-month tops

EUR/USD stalls its strong intraday rally near 1.1200 round-figure mark.
Acceptance above 200-DMA support prospects for additional gains.

Haresh Menghani FXStreet

The EUR/USD pair maintained its strong bid tone through the early European session on Friday, albeit has retreated around 20-25 pips from the 1.1200 handle, or four-month tops.

Extremely overbought conditions on hourly charts seemed to be the only factor that kept a lid on any strong follow-through, rather prompted some profit-taking at higher levels.

Given that the pair has already found acceptance above the very important 200-day SMA, the set-up seems tilted in favour of bullish traders and support prospects for additional gains.

This coupled with the fact that the pair's recent recovery has been along an ascending trend-channel formation on the daily chart adds credence to the near-term constructive set-up.

Some follow-through buying beyond the 1.1200 mark will reaffirm the bullish outlook and lift the pair further towards challenging the ascending channel resistance, near the 1.1255-60 region.

On the flip side, immediate support is pegged near mid-1.1100s (200-DMA), which if broken might prompt some long-unwinding trade and accelerate the slide back towards the 1.1100 handle.

EUR/USD daily chart

EUR/USD

Overview
Today last price	1.1177
Today Daily Change	0.0045
Today Daily Change %	0.40
Today daily open	1.1132

Trends
Daily SMA20	1.1063
Daily SMA50	1.1066
Daily SMA100	1.1066
Daily SMA200	1.1155

Levels
Previous Daily High	1.1154
Previous Daily Low	1.1103
Previous Weekly High	1.1116
Previous Weekly Low	1.1002
Previous Monthly High	1.1176
Previous Monthly Low	1.0981
Daily Fibonacci 38.2%	1.1123
Daily Fibonacci 61.8%	1.1135
Daily Pivot Point S1	1.1105
Daily Pivot Point S2	1.1078
Daily Pivot Point S3	1.1054
Daily Pivot Point R1	1.1157
Daily Pivot Point R2	1.1181
Daily Pivot Point R3	1.1208

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD challenges 1.1700, six-week lows

EUR/USD remains under heavy downside pressire in quite a dfrreadful start to the new trading week, putting the 1.1700 support to the test amid the marked rebound in the US Dollar. The flight-so-safety environment continues to support the Greenback following the escalating conflict in the Middle East.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold shifts its attention to $5,600 on fligh-to-safety mood

Gold climbs to levels last seen in late January past the $5,400 mark per troy ounce on Monday. The yellow metal’s strong uptick remains fuelled by incresing geopolitical tensions in the Middle East and the consequent demand for safer assets.

Bitcoin on brink of breakdown amid US-Iran war

Bitcoin (BTC) remains under pressure near the key support level of $65,700. Trading at $66,400 at the time of writing on Monday, a breakdown below this critical level would suggest a deeper correction ahead.

The week ahead: Conflict in the Middle East jolts markets

Events in the Middle East are obviously dominating financial markets this morning. The Brent crude oil price is extending gains and is higher by more than 8%, stock futures are pointing lower and the gold price is higher by more than 2%.

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.