Key Highlights
- EUR/USD is struggling to start a recovery wave above 1.0920.
- A major bearish trend line is forming with resistance near 1.0900 on the 4-hour chart.
- GBP/USD is struggling to recover above the 1.2760 resistance zone.
- Crude oil prices climbed higher above the $76.50 resistance.
EUR/USD Technical Analysis
The Euro attempted a minor increase above the 1.0900 zone against the US Dollar. However, EUR/USD failed to settle above the 1.0920 resistance and started another decline.
Looking at the 4-hour chart, the pair remained in a bearish zone below 1.0920, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
The bulls are now protecting the 1.0815 support zone. If there is a downside break below the 1.0815 level, the pair could even dive below 1.0800. The next major support is 1.0765. Any more losses might call for a drop toward the 1.0720 support.
On the upside, the pair is facing resistance near the 1.0900 level. There is also a major bearish trend line forming with resistance near 1.0900 on the same chart.
The next key resistance is near the 1.0920 level or the 100 simple moving average (red, 4 hours). A close above the 1.0920 zone could open the doors for more upsides. The next stop for the bulls might be 1.0980. Any more gains might send EUR/USD toward the 1.1050 level.
Looking at GBP/USD, the pair is stuck below the 1.2760 resistance and might witness another decline in the near term.
Economic Releases
- Dallas Fed Manufacturing Business Index for Jan 2023 – Forecast -9.0 versus -9.3 previous.
