EUR/USD could trim gains and drop
|Key highlights
- EUR/USD attempted another increase from the 1.1000 support.
- A major bearish trend line is forming with resistance at 1.1110 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair climbed above the 50% Fib retracement level of the downward move from the 1.1155 swing high to the 1.1003 low. The pair remained stable above the 200 simple moving average (green, 4-hour) but struggled to clear the 100 simple moving average (red, 4-hour).
It also faced sellers near the 61.8% Fib retracement level of the downward move from the 1.1155 swing high to the 1.1003 low at 1.1100.
Besides, there is a major bearish trend line forming with resistance at 1.1110 on the same chart. A clear move above the 100 simple moving average (red, 4-hour) and the trend line might set the pace for a move toward 1.1150. Any more gains might call for a test of the 1.1200 zone.
On the downside, immediate support sits near the 1.1040 level. The next key support sits near the 200 simple moving average (green, 4-hour) at 1.1020. A downside break below the 1.1020 level could set the pace for a larger decline. The next major support is near the 1.0950 level.
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