Key Take-Aways
- From the parity support, EUR/USD is attempting a recovery wave.
- On the 4-hours chart, a significant negative trend line is developing with resistance close to 1.0150.
- If the resistance at 1.2000 is properly closed above, GBP/USD may increase.
- The price of gold kept falling and traded beneath the $1,720 level of support.
Technical Analysis of EUR/USD
When compared to the US Dollar, the Euro began a significant drop from above the 1.0250 region. Even yet, the EUR/USD soared below parity and broke through the 1.0100 barrier.
The pair even went as low as 0.9952 when looking at the 4-hour chart. It settled significantly below the 200 simple moving average and the 100 simple moving average (red, 4-hours) (green, 4-hours).
Over the parity level, there was a recent upside correction. The resistance level of 1.0050 was surpassed by the duo. Currently, resistance is present close to the 1.0110 level, which corresponds to the 23.6 percent Fibonacci retracement level of the decline from the 1.0614 swing high to the 0.9952 low.
On the same chart, a significant negative trend line with resistance close to 1.0150 is also developing. If there is an upward break, the pair might advance towards 1.0200.
The 100 simple moving average and the 1.0280 level may serve as the next significant resistance (red, 4-hours). It is close to the 50% Fibonacci retracement level of the decline from the 0.9952 low to the 1.0614 swing high.
The pair could correct lower and dip below 1.0000 if there is no upside break. Below 0.9950, the pair may resume its downward trend, which would be the next significant support.
Regarding GBP/USD, the pair also began an upward correction from the 1.1760 area, although it may run into difficulties close to the 1.2000 area.
Economic Release to Trade Today
The US NAHB Housing Price Index is expected to be 68 in July 2022 (MoM), up from 67 in the previous month.
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