Important Points
- A significant obstacle is blocking the EUR/USD close to 1.0225.
- On the 4-hour chart, a crucial bearish trend line is developing with resistance close to 1.0230
- If there is a definite move over 1.2050, GBP/USD may rebound.
- The price of crude oil is falling and is currently below $100
Technical Analysis of EUR/USD
The 0.9950 area against the US Dollar marked the beginning of the Euro’s upward correction. Although the EUR/USD is back above 1.0150, it now faces some significant obstacles.
The pair was able to recoup losses and move over the 1.0100 and 1.0150 resistance levels, according to the 4-hours chart. The upward movement from the 0.9951 low to the 1.0614 swing high was retracted by a 38.2 percent Fibonacci level. The bulls drove the pair over this level.
The 100 simple moving average and the area around 1.0225, however, present challenges for the pair (red, 4 hours). On the same chart, a significant negative trend line with resistance close to 1.0230 is also developing.
But the pair is currently seeing resistance near 1.0225 and the 100 simple moving average (red, 4 hours). On the same chart, a significant bearish trend line is also developing, with resistance located close to 1.0230.
Near the 1.0360 mark, which would be the next significant barrier, the pair might increase to 1.0420. In the absence of an upward break, the pair may correct downward and dive under 1.0180.
The next significant support level is 1.0150, below which the pair may start to fall again. In the aforementioned scenario, the pair might fall to 1.0110.
When looking at the price of crude oil, the bulls encountered obstacles close to the 103.00 area and later began a new slide below the $100 barrier.
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