EUR/USD Could Recover If It Clears 1.1400

0
82

Keys

  • EUR / USD is consolidating above the 1.1220 support zone.
  • It cleared a major bearish trend line with resistance near 1.1285 on the 4-hour chart.
  • GBP / USD could start an upward correction above the 1.3300 resistance.
  • The price of crude oil seems to form the basis for recent growth above $ 73.50.

EUR / USD Technical Analysis

The euro found support near the support levels of 1.1200 and 1.1220 against the US dollar. EUR / USD is now testing a recovery wave above the 1.1300 resistance zone.

21 10

Looking at the 4-hour, the pair is trying a decent upward move above the 1.1300 resistance. The pair even climbed above the 23.6% Fib-rich level of the downtrend move from the 1.1608 swing high to 1.1186 low.

There was also a break above a major bearish trend line with resistance near 1.1285 on the same chart. The pair even climbed above the 1.1320 level and the 100 simple moving average (red, 4-hours). On the upside, the bulls are now facing resistance near the 1.1380 level.

The next key resistance is near the 50% Fib-rich level of the downward move from the 1.1608 swing high to 1.1186 low. The main resistance is near the 1.1400 level and the 200 simple moving average (green, 4-hour).

A clear break above the 1.1380 and 1.1400 resistance levels could open the doors for a steady upward move. If not, there could be a recent decline below the 1.1280 support. The next major support is near the 1.1220 level below which the pair could heavily decline.

Looking at GBP / USD, the pair has emerged below the key 1.3200 support zone, and is now testing an upward correction.

Economic Editions

  • German Wholesale Price Index for Nov 2021 (MoM) – Forecast + 1.0%, versus + 1.6% previous.

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here