EUR/USD Likely to Test the 1.0600 Resistance Zone

Key Takeaways

  • EUR/USD rebound and transacted above the 1.0550 resistance
  • Support is close to 1.0535 on the four hours chart
  • GBP/USD is encountering mounting tasks close to 1.2400 and 1.2450.
  • The price of Crude oil dropped, supports close to $103.20

EUR/USD Technical Analysis

EUR swiftly dropped from the 1.0780 zone against the USD. EUR/USD transacted as low as 1.0359 before its new increase.

From the four-hour chart, the pair rose above the 1.0420 resistance zone. The move above the 38.2% Fib retracement level of the major dip from the 1.0773 swing high to 1.0359 low.

The buyers were able to push the pair above the 1.0550 resistance close to the 1.0600 zone, the SMA (red, four hours), and the 200 SMA (green, four hours).

The 50% Fib retracement level of the main dip from the 1.0773 swing high to 1.0359 low is currently the resistance.

A drive above the 1.0600 resistance zone might drive the pair towards the 1.0650 level in the nearest future. Upcoming resistance could be 1.0750.

There is major support close to the 1.0535 level. There is also a buying trend line in place with support close to 1.0535 on the same chart, underneath which there is fear of a new decline.

From GBP/USD, the pair is encountering a few obstacles close to 1.0400 and could extend to trade shortly.

Today’s News Release

  • US Durable Goods Orders for May 2022 – Forecast +0.1% versus +0.5% previous.
  • US Pending Home Sales for May 2022 (YoY) – Forecast -9.8%, versus -9.1% previous.

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