EUR/USD Targets New Highs, Oil Price Consolidating

Key Take-Aways        

  • The EUR/USD exchange rate held strong above the 1.0620 support level.
  • On the 4-hour chart, a significant bullish trend line is developing with support close to 1.0700.
  • GBP/USD is still having trouble breaking through the 1.2660 resistance area.     
  • The price of crude oil increased and surpassed the $121.00 barrier.

EUR/USD Technical Analysis

In relation to the US Dollar, the Euro had trouble breaking through the 1.0800 resistance level. Although the bulls were aggressive above the 1.0620 level, the EUR/USD corrected lower.

On the 4-hour chart, the pair reached a low of 1.0627 before beginning a new rise. The resistance level of 1.0700 was moved above. The 100 simple moving average (red, 4 hours), the 200 simple moving average, and the 1.0650 level all served as strong resistance for the pair (green, 4 hours).

The pair experienced a movement from the 1.0787 swing high to 1.0627 low and saw a move above the 50% Fib retracement line. But near 1.0750, the pair saw selling pressure.

A barrier was formed by the 76.4 percent Fib retracement level of the decline from the 1.0787 swing high to the 1.0627 low. Currently, it is settling below the 1.0750 resistance.

The next significant obstacle might be close to the 1.0800 level, above which the EUR/USD could surge higher.

The pair may fall toward the 1.0700 support if there is a bearish correction. On the same chart, a significant bullish trend line with support close to 1.0700 is also developing. Near the 1.0650 mark stands the next significant support.

The 100 simple moving average and 1.0620 are the primary supports (red, 4 hours). Any more losses might push the pair closer to the 1.0500 support.

GBP/USD corrected down after failing to build enough momentum to move above the 1.2660 resistance level.

Today’s Economic Release

UK BRC Like-for-Like Retail Sales for April 2022 (YoY) are predicted to decrease by -3.5% as opposed to -1.7% in the previous month.