Key points
- EUR/USD fell further before bulls emerged near 1.1575.
- It traded above the downtrend line with resistance at 1.1610 on the 4-hour chart.
- GBP/USD rose above the 1.3450 resistance area.
- Gold has begun a consolidation phase above the $4,450 support level.
Technical analysis of the EUR/USD pair
The euro remained in a bearish zone below the 1.1720 level against the US dollar. EUR/USD fell below 1.1620 before the bulls emerged.
Looking at the 4-hour chart, the pair traded as low as 1.1576 and recently started a recovery wave. The pair rose above the 23.6% Fibonacci retracement level of the downward move from the high of 1.1787 to the low of 1.1576.
Besides, the pair is trading above the downtrend line with resistance level 1.1610. On the upside, the pair is facing resistance at 1.1655. The first major resistance could be at 1.1685, the 100 SMA (red, 4-hours), the 200 SMA (green, 4-hours), and the 61.8% Fibonacci retracement level of the downward move from the 1.1787 swing high to the 1.1576 low.
A close above 1.1700 may open the door for gains above 1.1720. In the mentioned case, the bulls may target a move to the 1.1800 level. If there is another decline, the pair may find offers near 1.1600.
The first major support is located near the 1.1575 level. The next support level could be at 1.1550. A close below 1.1550 may start the drop to 1.1500. Any further losses may open the door to a drop towards the 1.1465 area.
Looking at the GBP/USD pair, the pair started a good rally and managed to cross the 1.3450 resistance area.
