EUR/USD makes u-turn, risk of more downsides
|Key highlights
- EUR/USD started a fresh decline from the 1.0945 resistance.
- It traded below a rising channel with support at 1.0880 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair traded below a rising channel with support at 1.0880. It settled below the 1.0800 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
A low was formed at 1.0686 and the pair is now consolidating losses. It is trading near the 23.6% Fib retracement level of the recent decline from the 1.0825 swing high to the 1.0686 low.
On the downside, immediate support sits near the 1.0685 level. The next key support sits near the 1.0650 level. Any more losses could send the pair toward the 1.0620 level.
On the upside, the pair could face resistance near the 1.0755 level. The first key resistance is near the 1.0775 level or the 61.8% Fib retracement level of the recent decline from the 1.0825 swing high to the 1.0686 low.
A close above the 1.0775 level could set the tone for another increase. The next major resistance could be 1.0800, above which the price could accelerate higher toward the 1.0820 resistance.
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