EUR/USD Struggles Below 1.2000, Dollar Consolidates

Key Highlights

  • EUR/USD failed to clear 1.2000 and started a fresh decline.
  • It broke a connecting bullish trend line with support near 1.1900 on the 4-hours chart.
  • GBP/USD also failed near 1.4000 and started a fresh decline.
  • USD/JPY remains elevated above the 108.00 support zone.

EUR/USD Technical Analysis

This past week, the Euro made an attempt to clear the 1.1990 and 1.2000 resistance levels against the US Dollar. EUR/USD failed to gain strength and it started a fresh decline from 1.1990.

Looking at the 4-hours chart, the pair topped near the 1.2000 zone and the 100 simple moving average (red, 4-hours). There was also a failure observed near the 38.2% Fib retracement level of the downward move from the 1.2243 high to 1.1835 low.

Recently, there was a fresh decline below the 1.1920 support zone. There was also a break below a connecting bullish trend line with support near 1.1900 on the same chart.

If the pair fails to stay above the 1.1850 support zone, there is a risk of a drop below the 1.1835 low. Any more losses might call for a move towards the 1.1780 support zone.

On the upside, the pair could face hurdles near 1.1950. The main resistance is still near the 1.1990 and 1.2000 levels. A successful close above the 1.2000 zone could open the doors for a larger increase in the coming sessions.

Similarly, GBP/USD must settle above 1.3980 and 1.4000 for a sustained upward move. Conversely, USD/JPY remains elevated above 108.00 and there are chances of more upsides above 109.50.

Economic Releases

  • Euro Zone Current Account s.a. for Jan 2021 – Forecast €36.8B versus €36.7B previous.
  • US Existing Home Sales for Feb 2021 (MoM) – Forecast -3.0%, versus +0.6% previous.