Key Highlights
- EUR/USD struggled to extend gains above the 1.0620 resistance zone.
- It traded below a connecting bullish trend line with support at 1.0535 on the 4-hour chart.
- USD/JPY is attempting to climb above the 154.00 resistance zone.
- Bitcoin rallied to a new all-time high above $106,000.
EUR/USD Technical Analysis
The Euro failed to settle above 1.0620 against the US Dollar. EUR/USD started a fresh decline and traded below the 1.0550 support zone.
Looking at the 4-hour chart, the pair traded below a connecting bullish trend line with support at 1.0535. There was a move below 1.0480 and the pair traded as low as 1.0453. It is now consolidating losses and trading near the 38.2% Fib retracement level of the downward move from the 1.0629 swing high to the 1.0453 low.
The pair is now below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). On the upside, the pair could face resistance near the 1.0520 level.
The first major resistance is near the 1.0540 level. It is close to the 50% Fib retracement level of the downward move from the 1.0629 swing high to the 1.0453 low. A close above the 1.0540 level could set the tone for another increase.
The next major resistance could be the 1.0600 level, above which the price could climb higher toward the 1.0620 resistance.
On the downside, immediate support sits near the 1.0480 level. The next key support sits near the 1.0450 level. Any more losses could send the pair toward the 1.0410 level.
Looking at Bitcoin, the price started another increase and there was a move to a new all-time high above $106,000.
Upcoming Economic Events:
- Euro Zone Manufacturing PMI for Dec 2024 (Preliminary) – Forecast 45.0, versus 45.2 previous.
- Euro Zone Services PMI for Dec 2024 (Preliminary) – Forecast 49.9, versus 49.5 previous.
