The EUR/USD Dropping Towards The Support Zone, Gold Could Reverse Higher Above $2000
- A downward correction in the EUR/USD began at the 1.0930 level.
- In the 4-hours chart, it traded below a significant bullish trend line that had support at 1.0810.
- Above the 1.2200 support level, the GBP/USD exchange rate is consolidating gains.
- JPY/USD lost more ground below the 130.50 level of support.
Technical Analysis of EUR/USD
At the 1.0750 resistance level, the Euro’s significant rise versus the US dollar began. Before it began a downward reversal, EUR/USD even rose beyond 1.0900.
In the 4-hour chart, the pair reached a high of 1.0929 before sellers came into play. Below the 1.0850 and 1.0820 support levels, there was a decline. A significant bullish trend line with support at 1.0810 was even breached by the pair.
The pair is still above both the 100 simple moving average (red, 4-hours) and the 200 simple moving average, though (green, 4-hours). At the level of 1.0750 is an immediate support on the downside.
Below this level, there is a possibility of a move toward the 100 simple moving average, where the next significant support is located close to the 1.0720 level (red, 4-hours). Any additional losses could pave the way for a new slide in direction of the 1.0520 level.
The upward resistance is currently located close to the 1.0820 level. Near the 1.0850 level comes the first significant obstacle. The next significant barrier is located close at 1.0865.
The pair may rise toward the 1.0920 region if there is a clear move above the 1.0865 barrier. If the pair rises more, it might move toward 1.0980 or even 1.1000.
On GBP/USD, the pair is maintaining gains above the 1.2200 mark and may try to advance again soon.
Economic News To Trade Today
- Bank of England Governor Bailey to Speak today by 6:00PM
Author: Amogo Solomon
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