EUR/USD Starts Fresh Slide, Dollar Turns Green

Technical analysis of Forex market

Key Highlights

  • EUR/USD started a major decline after it broke the 1.2000 support.
  • It traded below major supports near 1.2050 and 1.1950 on the 4-hours chart.
  • GBP/USD also declined heavily below the 1.4000 support.
  • Gold price traded below the $1,840 support and extended its decline below $1,800.

EUR/USD Technical Analysis

The Euro made a few attempts to gain strength above 1.2100 against the US Dollar, but it failed. As a result, EUR/USD started a major decline and it broke the key 1.2000 support to enter a bearish zone.

Looking at the 4-hours chart, the pair gained bearish momentum after it settled below the 1.2000 support. The pair even closed below the 1.1950 support, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The bears gained strength and there was a break towards 1.1840. If there are more downsides, the pair could revisit the 1.1800 support. The next major support is near the 1.1765 level.

On the upside, an immediate resistance is near the 1.1925 level. The first major resistance is near the 1.1950 level, above which the pair could aim a test of 1.2000 in the near term.

Looking at GBP/USD, the pair followed a similar path and it declined heavily below the 1.4000 support. Besides, gold price saw strong bearish moves below the $1,800 support level.

Economic Releases

  • Chicago Fed National Activity Index for May 2021 – Forecast 0.20, versus 0.24 previous.
  • ECB’s President Lagarde speech.