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EUR/USD Could Gather Momentum If It Clears 1.1920

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Aayush Jindal

Key Highlights

  • EUR/USD recovered nicely above 1.1850 and 1.1880 resistance levels.
  • It broke a major bearish trend line with resistance near 1.1770 on the 4-hours chart.
  • GBP/USD is struggling and it is now trading well below 1.3800.
  • USD/JPY is facing a strong resistance near the 110.00 zone.

EUR/USD Technical Analysis

This past week, the Euro formed a support base above 1.1750 against the US Dollar. EUR/USD broke the 1.1850 resistance level to move into a positive zone.

Looking at the 4-hours chart, the pair traded as low as 1.1704 before starting a fresh increase. It broke a major bearish trend line with resistance near 1.1770. The bulls gained strength, resulting in a break above the main 1.1850 resistance.

The pair settled above the 1.1850 level and the 100 simple moving average (red, 4-hours). There was a clear break above the 50% Fib retracement level of the downward move from the 1.1988 high to 1.1704 low.

It is now facing resistance near the 1.1920 level and the 200 simple moving average (green, 4-hours). a clear break above the 1.1920 level could open the doors for a decent increase towards 1.2000 and 1.2050.

Conversely, there could be a fresh decline below the 1.1880 level. The next key support could be near 1.1820 or the 100 simple moving average (red, 4-hours). Any more losses might call for a drop towards the 1.1700 zone.

Looking at GBP/USD, the pair faced an increase in selling pressure and it is now trading well below 1.3800. Besides, USD/JPY must clear 110.00 to continue higher in the near term.

Economic Releases

  • Euro Zone Retail Sales for Feb 2021 (YoY) - Forecast -5.7%, versus -6.4% previous.
  • Euro Zone Retail Sales for Feb 2021 (MoM) - Forecast +1.0%, versus -5.9% previous.
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