EUR/USD Attempts Bounce but Encounters Strong Resistance Barrier – Action Forex
Key Highlights
- EUR/USD started a recovery wave from 1.1465.
- A major bearish trend line is forming with resistance at 1.1620 on the 4-hour chart.
- GBP/USD recovered some losses and climbed above 1.3120.
- USD/JPY is consolidating above the 152.50 support.
EUR/USD Technical Analysis
The Euro found support near 1.1465 against the US Dollar. EUR/USD formed a base and started a recovery wave above 1.1500.
Looking at the 4-hour chart, the pair traded above the 1.1520 and 1.1540 levels. There was a move above the 50% Fib retracement level of the downward move from the 1.1668 swing high to the 1.1468 low.
On the upside, the pair faces resistance near the 1.1595 zone, the 61.8% Fib retracement level of the downward move from the 1.1668 swing high to the 1.1468 low, and the 100 simple moving average (red, 4-hour).
The first major resistance is 1.1620. There is also a major bearish trend line forming with resistance at 1.1620 and the 200 simple moving average (green, 4-hour). A close above 1.1620 resistance might push the pair to 1.1680. Any more gains could set the pace for a steady increase toward 1.1750.
On the downside, the pair might find support at 1.1540. The main support might be 1.1520. A close below the 1.1520 zone could start a pullback toward. Any more losses might open the doors for a test of 1.1465.
Looking at GBP/USD, the pair started a recovery wave above 1.3120 but faces hurdles near the 1.3240 level.
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