EURUSD Approaching Key Supports, Can It Recover?
EUR/USD formed a short term top near 1.1494 and declined more than 300 pips. There was a break below a key bullish trend line at 1.1135 on the 4-hours chart. GBP/USD declined heavily below 1.2500 and AUD/USD nosedived below 0.6250.
EUR/USD Technical Analysis
Looking at the 4-hours chart, the pair declined more than 300 pips in the past few days. During the decline, it broke the 50% Fib retracement level of the key upward move from the 1.0777 low to 1.1494 high.
Moreover, there was a break below a key bullish trend line with support near 1.1135. The pair even tested the 1.1050 support and the 100 simple moving average (red, 4-hours).
The next major support is seen near the 1.1000 area and the 200 simple moving average (green, 4-hours). If there is a daily close below the 1.1000 support area, EUR/USD could continue to move down towards the 1.0920 and 1.0850 support levels.
Conversely, the pair could start a decent recovery above the 1.1150 and 1.1180 levels. The main resistance on the upside is near the 1.1250 level, above which the pair might recover to 1.1350.
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