EUR/USD Holds Support, Can Bulls Save The Day?

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Key Highlights

• EUR/USD struggled to stay above the 1.0350 pivot zone.
• A major bullish trend line is forming with support near 1.0235 on the 4-hours chart.
• Gold price rallied further above the $1,780 resistance.
• GBP/USD started a downside correction from the 1.2280 resistance zone.

EUR/USD Technical Analysis

The Euro gained pace above the 1.0220 resistance zone against the US Dollar. EUR/USD even cleared the 1.0250 and 1.0300 levels before the bears appeared.

Looking at the 4-hours chart, the pair settled above the 1.0250 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours). There was a spike above the 1.0350 level and the pair traded as high as 1.0368.

The pair is now correcting lower and trading below the 1.0300 level. There was a test of the 50% Fib retracement level of the upward move from the 1.0122 swing low to 1.0368 high.

On the downside, there is a decent support forming near 1.0235 level. There is also a major bullish trend line forming with support near 1.0235 on the same chart.

The main support is now forming near the 1.0200 level. A downside break below the 1.0200 support might spark more losses. The next major support is near the 1.0150 level. Any more losses might send the pair towards the 1.0100 zone.

On the upside, the pair is facing resistance near the 1.0320 level. The next major resistance is near the 1.0350 level. A clear move above the 1.0350 resistance might send the pair higher towards the 1.0400 level.

The next major resistance is 1.0420, above which the pair could accelerate higher. In the stated case, the pair could rise towards the 1.0500 resistance zone in the near term.

Looking at GBP/USD, the pair climbed higher above the 1.2220 resistance level, but it failed to gain strength above the 1.2280 level and corrected lower.

Economic Releases

• NY Empire State Manufacturing Index for August 2022 – Forecast 8.5, versus 11.1 previous.