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EUR/USD Turns Green But Can Bulls Protect This Support

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Aayush Jindal

Key Highlights

  • EUR/USD started a decent increase above the 1.0880 resistance.
  • A key bullish trend line is forming with support at 1.0910 on the 4-hour chart.
  • Gold prices rallied above the $2,180 resistance zone.
  • The US Consumer Price Index could be 3.1% in Feb 2024 (YoY).

EUR/USD Technical Analysis

The Euro started a fresh increase above the 1.0850 level against the US Dollar. EUR/USD broke the 1.0880 level to move into a positive zone.

Looking at the 4-hour chart, the pair settled above the 1.0880 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). It also traded above the 1.0950 level before the bears appeared.

A high was formed at 1.0981 before the pair corrected lower. There was a move below the 1.0950 level. The pair dipped below the 23.6% Fib retracement level of the upward move from the 1.0795 swing low to the 1.0981 high.

Immediate support is near the 1.0910 level. There is also a key bullish trend line forming with support at 1.0910 on the same chart. The next major support is at 1.0865 or the 61.8% Fib retracement level of the upward move from the 1.0795 swing low to the 1.0981 high.

If there is a downside break below the 1.0865 support, the pair could decline toward the 1.0820 support. If there is a fresh increase, the pair could face resistance near the 1.0950 level.

The first major resistance is now forming near 1.0980. The main resistance is near 1.1000. A close above the 1.1000 zone could open the doors for more upsides. The next stop for the bulls might be 1.1080.

Looking at Gold, there was a strong increase above the $2,150 resistance and the bulls might aim for a move toward $2,250.

Economic Releases

  • US Consumer Price Index for Feb 2024 (MoM) – Forecast +0.4%, versus +0.3% previous.
  • US Consumer Price Index for Feb 2024 (YoY) – Forecast +3.1%, versus +3.1% previous.
  • US Consumer Price Index Ex Food & Energy for Feb 2024 (YoY) – Forecast +3.7%, versus +3.9% previous.
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