EUR/USD takes hit and at risk of more downsides
|Key highlights
- EUR/USD struggled near 1.1020 and started a fresh decline.
- It traded below a key bullish trend line with support at 1.0860 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair settled below the 1.0880 support, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
It traded below a key bullish trend line with support at 1.0860 on the same chart. There was a drop below the 61.8% Fib retracement level of the upward move from the 1.0656 swing low to the 1.1017 high.
The pair is now consolidating above the 76.4% Fib retracement level of the upward move from the 1.0656 swing low to the 1.1017 high.
If there is a downside break below the 1.0740 support, the pair could drop toward the 1.0700 level. The next major support is 1.0650, below which the bears might take control.
On the upside, immediate resistance is near the 1.0820 level. The next key resistance is near the 1.0880 level. The main resistance is near 1.0920. A close above the 1.0920 zone could open the doors for more upsides. The next stop for the bulls might be 1.1000.
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