• EUR/USD extended losses and tested the 1.0500 support.
  • A key bearish trend line is forming with resistance at 1.0585 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair settled below the 1.0600 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). There was also a move below the 1.0550 level.

A low was formed at 1.0496 and the pair is now consolidating losses. On the upside, the pair could face resistance near the 1.0565 level. There is also a key bearish trend line forming with resistance at 1.0585 on the same chart.

The first key resistance is near the 1.0600 level or the 23.6% Fib retracement level of the downward move from the 1.0939 swing high to the 1.0496 low.

A close above the 1.0600 level could set the tone for another increase. The next major resistance could be 1.0650, above which the price could accelerate higher toward the 1.0765 resistance. It is near the 61.8% Fib retracement level of the downward move from the 1.0939 swing high to the 1.0496 low.

On the downside, immediate support sits near the 1.0500 level. The next key support sits near the 1.0465 level. Any more losses could send the pair toward the 1.0420 level or even 1.0380 in the near term.

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