The Euro to dollar exchange rate is currently above the 1.1820 support. It seems like EUR/USD is approaching a major break either above 1.1920 or below 1.1820 in the near term.
Let us try to understand how the shared currency can move in the short term with supports at 1.1840 and 1.1820.
Key Points to Consider for EUR/USD:
- The Euro is moving nicely in the bullish zone above the 1.1820 support against the US Dollar.
- EUR/USD pair is facing sellers near a bearish trend line with resistance at 1.1910-20 on the hourly chart.
- The pair might soon make the next move either above 1.1920 or below 1.1820 in the near term.
EUR/USD Technical Analysis
There was a decent price action for the EUR/USD pair during the past few sessions, as the Euro to Dollar rate settled above the 1.1820 support. However, it seems like the pair is struggling to move above the 1.1920 resistance zone.
It attempted on a couple of occasions to settle above 1.1900-20, but failed. On the upside, there is a key bearish trend line with resistance at 1.1910-20 on the hourly chart.
The pair is currently well below the 1.1900 level, the 100 hourly simple moving average and the 50 hourly SMA. To the topside, it is facing a major resistance near 1.1875 and the 38.2% Fib retracement level of the last decline from the 1.1935 high to 1.1837 low.
Moreover, the 50 hourly SMA is at 1.1886 along with the 50% Fib retracement level of the last decline from the 1.1935 high to 1.1837 low.
Therefore, the 1.1880 resistance area is important before the trend line hurdle at 1.1920. EUR/USD buyers need to break both barriers for more gains above 1.1920.
Euro to Dollar Approaching Break?
On the downside, there is a crucial support forming at 1.1820. It seems like the price is approaching a breakout either above 1.1920 or below 1.1820 in the near term.
Above 1.19200, the EUR/USD pair might target 1.2000 and 1.2050. On the flip side, a break of the 1.1820 support would call for more declines toward 1.1750 in the near term.
Trade safe and wisely traders.