Key Take-Aways
- The 1.0740 resistance area marked the beginning of the EUR/USD’s downward decline.
- On the 4-hours chart, the crucial support is located close to the 1.0500 area.
- After touching the 1.2450 resistance level, GBP/USD fell precipitously.
Technical Analysis of EUR/USD
In relation to the US Dollar, the Euro accelerated above the 1.0620 resistance level. Before sellers took control, the EUR/USD even rose over the 1.0700 mark.
The pair has firmly positioned itself above the 100 simple moving average (red, 4-hours) and the 200 simple moving average, according to the 4-hours chart. It reached a high of 1.0736 before correcting to the negative.
The pair was pushed below the 1.0650 support region by the bears. The upward movement from the 1.0443 swing low to 1.0736 high was clearly moved below by a fall below the 38.2% Fib retracement level.
The first significant support for the downside is close to the 1.0550 level. It is close to where the upward movement from the 1.0443 swing low to 1.0736 high is 61.8% Fibonacci retracement level. Near the 1.0500 zone and the 100 simple moving average is the next significant support.
The pair may drop in the next days into the 1.0440 support zone if there is a bearish breach below the 100 simple moving average (red, 4-hours).
An early obstacle on the upward is located close to the 1.0665 level. Near 1.0695 might be the next significant resistance. A definite move above the 1.0695 resistance might signal the beginning of a continuous rise.
In the aforementioned scenario, EUR/USD can increase toward the 1.0740 level. Any additional advances might push the pair closer to the 1.0800 resistance level.
In terms of GBP/USD, the pair continued to rise above the resistance level of 1.2400 until the bears took control and there was a significant downward reaction.
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