EUR/USD Upside Gains May be Constrained, Gold Recovers Slightly
- Below the 1.0250 support, EUR/USD moved substantially downward.
- On the 4-hours chart, a crucial bearish trend line is developing with resistance close to 1.0280.
- GBP/USD climbed above 1.2000 after finding support near 1.1880.
- Below the $1,750 level, the price of gold fell.
Technical Analysis of EUR/USD
From the 1.0620 area against the US Dollar, the Euro began a significant drop. Below the 1.0420 support, the EUR/USD had a sharp loss and entered a negative zone.
The EUR/USD pair increased in price below the 1.0350 level, the 100 simple moving average, as seen on the 4-hour chart (red, 4-hours). It is also significantly higher than the 200 simple moving average (green, 4-hours).
Furthermore, it was pushed below the 1.0250 support region by the bears. Near 1.0071, a low was created, and the pair began a small upward correction. It attempted to cross over the 23.6 percent Fib retracement line of the decline from the swing high of 1.0614 to low of 1.0071.
The pair is running into resistance in the 1.0250 area on the upside. On the same chart, a significant negative trend line with resistance close to 1.0280 is also developing.
A test of the 1.0345 level, which represents the 50% Fibonacci retracement of the decline from the 1.0614 swing high to 1.0071 low, may be necessary if there is a clear advance above the trend line. Any further gains might pave the way for a move in the direction of the 1.0450 resistance.
The pair may start falling again if there is no recovery wave over the 1.0250 resistance. Near the 1.0050 level, the main support is located. The pair may drop even more if the downside broke through the 1.0050 support level.
For GBP/USD, the pair experienced a low of 1.1875 and just began an upward correction above 1.1950.
Today’s Economic Release to Trade
- UK BRC -Retail Sales for June 2022 (YoY) are predicted to decrease by -1.2 percent compared to the previous year’s -1.5 percent.
Author: Amogo Solomon
- USD/JPY Exposes To Risk of Further Downside, Next Is the Purchasing Manager’s Index
- The AUD/USD Will Likely Keep Gaining, The US Interest Rate Raised To 5.00%
- Gold Price Holding Gains, US Inflation Data Declined
- Non-Farm Payroll: The US Job Market Is Recovering Massively, Will The Dollar Index Gain Continue?
- The Price of Bitcoin Will Likely Rise if It Holds Above The $23,000 Zone