EUR/USD Resolved To The Downside Following Massive Dollar Gains
- From the 1.1040 region, the EUR/USD began to adjust downward.
- On the 4-hours chart, it fell below a significant bullish trend line at 1.0880.
- Below the $1,920 support level, the price of gold fell sharply.
- The price of crude oil is dropping towards the $72 level.
Technical Analysis of EUR/USD
Against the US Dollar, the Euro made a respectable attempt to rise above the 1.1000 resistance. However, the EUR/USD pair was unable to surpass 1.1040 and a downward reversal ensued
The pair fell below the 1.1000 and 1.0950 support levels, according to the 4-hours chart. At 1.0880, a crucial bullish trend line was broken. The downward movement from the 1.0801 swing low to 1.1032 high was retraced around 61.8% Fibonacci level, which the pair even fell beneath.
Both the 1.0850 level and the 100 simple moving average were breached by the pair. Now, it is trading close to the 1.0780 support level.
Near the 1.0750 level and the 200 simple moving average is the next significant support. The pair may fall toward the 1.0680 level if there is a downward break.
The pair will encounter resistance near 1.0850 and the 100 simple moving average on the upside. The 1.0880 level serves as the first significant resistance. A definite move over the 1.0880 resistance could signal the beginning of a persistent rise in direction of the 1.0950 resistance area.
Any further advances might pave the way for a move in the direction of the 1.1000 level. The pair’s next significant obstacle is close to 1.1040; if it is cleared, the 1.1200 resistance area may be reached.
Following the bears’ successful push of the price below the $1,900 support region, there was a significant bearish reaction in the price of gold.
Economic News To Trade Today
- Forecast for January 2023 (MoM) Euro Zone retail sales is -2.5%, down from the previous month’s +0.8%.
- Forecasted Euro Zone Retail Sales for January 2023 (YoY): -2.7%, down from -2.8% in the previous month.
Author: Amogo Solomon
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