Aayush Jindal
Key Highlights
- EUR/USD started a fresh decline from the 1.0950 resistance zone.
- It traded below a key contracting triangle with support at 1.0840 on the 4-hour chart.
- GBP/USD declined heavily below the 1.2750 support.
- Gold prices are consolidating gains above the $2,120 level.
EUR/USD Technical Analysis
The Euro failed to continue higher above the 1.0950 resistance against the US Dollar. EUR/USD traded below the 1.0880 support to enter a bearish zone.
Looking at the 4-hour chart, the pair traded below a key contracting triangle with support at 1.0840. It settled below the 1.0850 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
It tested the 1.0800 zone and remains at risk of more downsides in the near term. On the upside, the pair could face resistance near the 1.0835 level. The first major resistance is now forming near 1.0850.
A close above the 1.0850 zone could open the doors for more upsides. The next stop for the bulls might be 1.0920. If not, the pair might continue to decline. Immediate support is near the 1.0800 level.
The next major support is at 1.0780. If there is a downside break below the 1.0780 support, the pair could decline toward the 1.0750 support. Any more losses might send the pair toward the 1.0650 level in the near term.
Looking at Gold, the bulls pushed the price above the $2,200 zone before there was a downside correction and consolidation near $2,150.
Economic Releases
- US New Home Sales for Feb 2024 (YoY) - Forecast +0.3%, versus +1.5% previous.
