EUR/USD faces challenges: Can it break to new gains?
|Key highlights
- EUR/USD is facing hurdles near the 1.1120 and 1.1140 levels.
- A major contracting triangle is forming with support at 1.1060 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair failed to clear the 61.8% Fib retracement level of the downward move from the 1.1201 swing high to the 1.1026 low. There was a sharp bearish reaction, and the pair trimmed some gains.
There was a drop below the 1.1100 and the 100 simple moving average (red, 4-hour), but it stayed above the 200 simple moving average (green, 4-hour). On the downside, immediate support sits near the 1.1050 level.
There is also a major contracting triangle forming with support at 1.1060 on the same chart. The next key support sits near the 1.1020 level.
The main support is now forming near 1.0980. A downside break below the 1.0980 level could set the pace for a larger decline. The next major support is near the 1.0920 level.
On the upside, the pair could face resistance near the 1.1120 level. The next key resistance sits near the 1.1140 level and the triangle’s upper trend line. A clear move above the 1.1140 level could set the pace for a move toward the 1.1200 zone. Any more gains might call for a test of the 1.1250 zone.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.