EUR/USD Turns Red, Risk Of More Downsides

Key Highlights

• EUR/USD extended decline below the 1.1350 support zone.
• A connecting bearish trend line is forming with resistance near 1.1320 on the 4-hours chart.
• GBP/USD is still struggling to clear the 1.3500 resistance zone.
• Gold price started a downside correction from the $1,875 resistance zone.

EUR/USD Technical Analysis

The Euro gained bearish momentum after it broke the 1.1500 support against the US Dollar. EUR/USD even traded below the 1.1400 support to enter a bearish zone.

Looking at the 4-hours chart, the pair even settled below the 1.1350 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The pair even traded below the 1.1320 support zone. A low is formed near 1.1249 and the pair is now consolidating losses.

On the upside, the pair is facing resistance near 1.1315. It is near the 50% Fib retracement level of the recent decline from the 1.1374 swing high to 1.1249 low. There is also a connecting bearish trend line forming with resistance near 1.1320 on the same chart.

A clear break above the 1.1315 and 1.1320 resistance levels could open the doors for more gains. The next key resistance could be 1.1400.

On the downside, an initial support is near the 1.1250 level. A downside break below 1.1250 may perhaps open the doors for a move towards 1.1220. The next major support sits at 1.1200, below which the pair could dive to 1.1150.

Looking at GBP/USD, the pair is facing hurdle near the 1.3500 zone. Besides, gold price started a downside correction below the $1,850 level.

Economic Releases

• US Existing Home Sales for Oct 2021 (MoM) – Forecast +1%, versus +7% previous.