EUR/USD still at risk of more downsides below 1.0750
|Key highlights
- EUR/USD declined further below the 1.0820 support.
- It attempted a recovery wave above a connecting bearish trend line with resistance at 1.0810 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair settled below the 1.0850 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Finally, the pair tested the 1.0760 zone.
A low was formed at 1.0761 and the pair recently attempted to recover. It cleared a connecting bearish trend line with resistance at 1.0810 on the same chart. However, the bears seem to be active below the 1.0850 level.
On the downside, immediate support sits near the 1.0760 level. The next key support sits near the 1.0735 level. Any more losses could send the pair toward the 1.0700 level.
On the upside, the pair could face resistance near the 1.0850 level. The first key resistance is near the 1.0865 level and the 23.6% Fib retracement level of the downward move from the 1.1208 swing high to the 1.0761 low.
A close above the 1.0865 level could set the tone for another increase. The next major resistance could be 1.0925, above which the price could accelerate higher toward the 50% Fib retracement level of the downward move from the 1.1208 swing high to the 1.0761 low at 1.0985.
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