EUR/USD Retains Support, Gold Will Likely Reverse Higher

Key Take-Aways

  • The pivot zone of 1.0350 was a challenge for EUR/USD to maintain above.
  • On the 4-hours chart, a significant bullish trend line is developing with support close to 1.0235.
  • The price of gold increased its gains above the $1,780 barrier.
  • From the 1.2280 resistance area, the GBP/USD pair began to correct downward.

Technical Analysis of EUR/USD

In relation to the US Dollar, the Euro accelerated above the 1.0220 resistance level. Before the bears materialized, EUR/USD even cleared the 1.0250 and 1.0300 levels.

The pair closed above the 1.0250 level, the 100 simple moving average (4-hour red) and the 200 simple moving average on the 4-hour chart (green, 4-hours). The price of the pair spiked above 1.0350 and reached a high of 1.0368.

Currently, the pair is trading under the 1.0300 mark. The upward movement from the 1.0122 swing low to 1.0368 high was tested at the 50% Fib retracement level.

A strong support is emerging on the downside close to the 1.0235 level. On the same chart, a significant bullish trend line is also developing, with support located close to 1.0235.

Near the 1.0200 level, the major support is currently building up. Losses can increase if the downturn breaks through the 1.0200 support level. Near 1.0150, there is a significant support level. Any more losses might push the pair closer to the 1.0100 region.

The pair is encountering resistance near the 1.0320 level on the upswing. Near the 1.0350 level comes the next significant obstacle. The pair may rise higher toward the 1.0400 level if there is a clear move above the 1.0350 barrier.

The pair may move higher if they can clear 1.0420, the next significant obstacle. In the aforementioned scenario, the pair may increase in the near term toward the 1.0500 resistance region.

Near the 1.0200 level, the major support is currently building. Losses can increase if the downturn breaks through the 1.0200 support level. Near 1.0150, there is a significant support level. Any more losses might push the pair closer to the 1.0100 region.

The pair is encountering resistance near the 1.0320 level on the upswing. Near the 1.0350 level comes the next significant obstacle. The pair may rise higher toward the 1.0400 level if there is a clear move above the 1.0350 barrier.

For GBP/USD pair, it rose above the 1.2220 resistance level but corrected down after failing to build strength above the 1.2280 level.

Economic News to Trade Today

  • NY Empire State Manufacturing Index – Forecast: 8.5 versus previous 11.1 for the August 2022 
Author:
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

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