EUR/USD Could Nosedive Below 1.1780

Technical analysis of Forex market

Key Highlights

  • EUR/USD is struggling to recover and it could decline further below 1.1780.
  • A key bearish trend line is forming with resistance near 1.1820 on the 4-hours chart.
  • GBP/USD failed to surpass 1.3900 and started a fresh decline.
  • Crude oil price is correcting gains and it could even decline below $70.00.

EUR/USD Technical Analysis

The Euro remained in a bearish zone below the 1.1850 resistance zone against the US Dollar. EUR/USD is struggling to stay above 1.1800 and it could even dive below 1.1780.

Looking at the 4-hours chart, the pair seems to be following a bearish path from the 1.1975 swing high. The pair has settled below the 1.1850 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The pair is now struggling to stay above the 1.1800 and 1.1780 support levels. If there is a close below 1.1780, there is a risk of a sharp decline.

In the stated case, the pair could test 1.1750. Any more losses might lead the pair towards the 1.1720 support. On the upside, there is a key bearish trend line forming with resistance near 1.1820 on the same chart.

A successful close above the trend line could lead the pair towards 1.1850 and the 100 SMA. If the pair settled above 1.1850, it could even recover above 1.1900.

Looking at GBP/USD, the pair failed to clear the 1.3900 resistance level and it is could continue to slide below 1.3720.

Economic Releases

  • BoE’s Haskel speech.