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EUR/USD Faces Uphill Task Near 1.2000

Key Highlights

  • EUR/USD declined below the key 1.2000 and 1.1950 support levels.
  • A major bearish trend line is forming with resistance near 1.2100 on the 4-hours chart.
  • GBP/USD failed to recover above 1.4000 and started a fresh decline.
  • Gold price settled below $1,800, while crude oil price remained elevated above $70.00.

EUR/USD Technical Analysis

In the past few days, the Euro saw a bearish wave below the 1.2000 support against the US Dollar. EUR/USD even broke the 1.1950 support to move into a bearish zone.

Looking at the 4-hours chart, the pair traded as low as 1.1847. It settled well below the 1.2000 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

Recently, there was a minor upside correction above the 1.1900 level. The recovered above the 23.6% Fib retracement level of the key decline from the 1.2218 high to 1.1847 low. The pair even spiked above the 1.1950 resistance, but there was no upside continuation.

It seems like there are many hurdles forming near 1.2000 and 1.2050. The 50% Fib retracement level of the key decline from the 1.2218 high to 1.1847 low is also near 1.1940.

More importantly, there is a major bearish trend line forming with resistance near 1.2100 on the same chart. On the downside, the 1.1900 level is a short-term support. The key support is near 1.1850, below which the pair could continue to move down towards 1.1780.

Looking at GBP/USD, the pair attempted a decent recovery from 1.3800, but it failed to clear the main 1.4000 resistance zone.

Economic Releases

  • German Import Price Index for May 2021 (YoY) – Forecast +11.3%, versus +10.3% previous.
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