EUR/USD Begins Correction, Main Support Closely
- For a move above the 1.0400 resistance, EUR/USD picked up speed.
- On the 4-hours chart, a significant bullish trend line is developing with support close to 1.0280.
- The GBP/USD exchange rate is still above the 1.1800 barrier level.
- Below the $83.20 support level, the price of oil sharply dropped.
Technical Analysis of EUR/USD
Above the resistance levels of 1.0150 and 1.0250 against the US Dollar, the euro began to rise steadily. The resistance area of 1.0320 was even broken by EUR/USD.
The 100 simple moving average (red, 4-hours) and the 200 simple moving average are both above the 1.0300 level on the 4-hours chart (green, 4-hours).
It reached a peak of 1.0481 and lately began to adjust downward. Below the 1.0400 support level, it traded. In order to advance upward from the 0.9935 swing low to 1.0481 high, there was a move below the 23.6% Fib retracement level.
The 1.0280 level serves as a temporary support. On the same chart, a significant bullish trend line with support close to 1.0280 is also developing.
The area around 1.0200 is the next significant support. It is close to the 50% Fibonacci retracement level of the upward movement from the 1.0481 high to the 0.9935 swing low.
The main resistance level is at 1.0100. A close below 1.0100 may signal the beginning of another significant fall.
In the described scenario, the EUR/USD pair can fall near the 1.0000 support. An immediate upward resistance is located close to the 1.0385 level. Near 1.0400 may serve as the next significant obstacle. Any further gains might lay the stage for a move in the direction of the 1.0480 resistance region.
When looking at the price of oil, a significant decrease occurred below the $84.00 and $83.20 levels before the bulls started to take control at the $78.80 level.
Economic News To Trade Today
- October 2022 Chicago Fed National Activity Index – Forecast 0.10, versu 0.10 previous.
Author: Amogo Solomon
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