Key Highlights
- EUR/USD started a downside correction from the 1.1200 zone.
- It traded below a key bullish trend line with support at 1.1125 on the 4-hour chart.
- GBP/USD is consolidating near the 1.3120 level and might correct lower.
- USD/JPY might aim for a fresh increase if it clears the 146.50 resistance.
EUR/USD Technical Analysis
The Euro climbed higher and tested 1.1200 against the US Dollar. Recently, EUR/USD started a downside correction below 1.1150 and 1.1120 levels.
Looking at the 4-hour chart, the pair traded below a key bullish trend line with support at 1.1125. There was a move below the 23.6% Fib retracement of the upward move from the 1.0777 swing low to the 1.1200 high.
The pair is now trading near the 100 simple moving average (red, 4-hour) and testing the 38.2% Fib retracement of the upward move from the 1.0777 swing low to the 1.1200 high.
On the upside, the pair could face resistance near the 1.1075 level. The next key resistance sits near the 1.1120 level. A clear move above the 1.1120 level could set the pace for a move toward the 1.1150 level. Any more gains might call for a test of the 1.1200 zone.
On the downside, immediate support sits near the 1.1035 level. The next key support sits near the 1.0985 level. The main support is now forming near 1.0950 and the 200 simple moving average (green, 4-hour).
A downside break below the 1.0950 level could set the pace for a larger decline. The next major support is near the 1.0900 level.
Looking at GBP/USD, the pair started a downside correction below 1.3180 and might even revisit the 1.3050 level.
Upcoming Economic Events:
- Germany’s Manufacturing PMI for August 2024 – Forecast 42.1, versus 42.1 previous.
- Euro Zone Manufacturing PMI for August 2024 – Forecast 45.6, versus 45.6 previous.
