EUR/USD Could Extend Losses, US Dollar Gaining Across-Board
Key Take-Aways
- The EUR/USD fell after failing to rise over parity.
- On the 4-hours chart, it broke through a significant rising channel with support around 0.9940.
- Below the 1.1800 support level, the GBP/USD exchange rate is sharply declining.
- NZD/USD and AUD/USD are also moving downward.
Technical Analysis of EUR/USD
In relation to the US Dollar, the Euro tried to make a recovery wave from the 0.9900 region. The EUR/USD rose over the resistance levels of 0.9980 and 0.95, but gains were modest.

The pair has positioned itself below the 1.0050 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, according to the 4-hours chart (green, 4-hours).
Recently, it made a small upward movement above the resistance zone of 1.0000. The bears, however, were active close to the 1.0080 level. It was unable to surpass the 38.2% Fibonacci retracement level of the decline from the 0.9902 low to the 1.0368 swing high.
Below 1.0000, a new fall was initiated. On the same chart, a crucial ascending channel with support at 0.9940 was broken.
The 0.9900 support region is currently being approached by the pair. The pair may fall toward the 0.9850 support if there is a negative breach below the 0.9900 support.
Any further losses might necessitate a move in the direction of 0.9720.
On the other hand, the pair may once more climb above 0.9950. The pair is encountering resistance near the 1.0000 level on the upside. Near the 1.0080 level comes the next significant obstacle. The pair may advance higher toward the 1.0120 level or the 100 simple moving average if there is a clear move above the 1.0080 resistance (red, 4-hours).
The 1.0135 zone also serves as resistance because it is close to the 50% Fib retracement level of the decline from the 1.0368 swing high to the 0.9902 low.
In terms of GBP/USD, the pair was unable to break through the 1.1900 resistance zone before beginning a new slide below the 1.1800 level.
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Author: Amogo Solomon
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