EUR/USD Technical Analysis
Looking at the 4 hour chart, the pair traded as high as 1.0756 before experiencing a downward correction. The pair fell below the 23.6% Fib retracement level from the 1.0516 swing low to the 1.0756 high.
It is still trading well above the 1.0620 level, the 100 simple moving average (red, 4 hour), and the 200 simple moving average (green, 4 hour).
There is also an important bearish channel forming with resistance at 1.0690 on the same chart. A fresh bullish move could take the pair above the channel resistance. The next key resistance is near the 1.0720 level.
The main resistance is still near the 1.0750 level. A close above the 1.070 level could open the doors for further gains. The next stop for the bulls could be the 1.0880 level.
Failing that, the pair may begin another decline below the 1.0650 support level. The first major support is now forming near the 1.0635 level or the 50% Fib retracement level of the rally from the 1.0516 swing low to the 1.0756 high, below which the pair could test the 1.0620 pivot level in the near term.
The main support level is near the 1.0520 area. A break below 1.0520 could trigger a sharp decline. The next major support level is 1.0440.
