US Dollar Holds Strong, EUR/USD Declined Below 20-Year Low
- Below the 0.9900 support level, the EUR/USD fell sharply.
- On the 4-hours chart, it broke a significant bullish trend line at 0.9970.
- GBP/USD also had a significant fall below the 1.1000 level.
- Both the price of gold and crude oil dropped to a new monthly low.
Technical Analysis of EUR/USD
The Euro was unable to maintain its stability above parity against the US Dollar. To reach a new 20-year low, EUR/USD started a sharp drop and traded below numerous significant support levels.
On the 4-hours chart, the pair traded below both a significant positive trend line and the 0.9980 support level. It made way for a swift descent beneath the 0.9900 support level.
The price of the pair fell below the 0.9900 resistance level, the red 4-hour 100 simple moving average, and the 200 simple moving average. Below the 0.9800 support area, the drop accelerated, and the pair even traded below 0.9700.
The pair fell to a fresh 20-year low at 0.9550 after losing more than 250 pip. Now that it has corrected losses, it is trading above the 0.9600 mark. An initial obstacle on the upward is located close to the 0.9700 area.
The first significant barrier is located close to 0.9750. A clear advance above the level of 0.9750 would pave the way for a new rise to 0.9800. If the pair gains more, it can move toward the 0.9880 resistance level.
An initial support for the downside is located close to the 0.9600 level. The level of 0.9550 serves as the main support. The pair may move in the direction of the 0.9500 level if the downside breaks below the 0.9550 region. Near the 0.9320 level, which is the next significant support, the pair could potentially test the 0.9250 level.
The price of gold continued to fall and traded below the $1,660 support level. The price of crude oil has dropped below the $80 level of support.
Economic News To Trade Today
- For September 2022, the German IFO Business Climate Index- 87.1 Forecast versus 88.5 previous.
Author: Amogo Solomon
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