The recent decline of EUR/USD from the 1.0950 resistance zone has put the pair in a bearish zone. With a break below the 1.0880 support, EUR/USD entered a key contracting triangle with support at 1.0840. This led to the pair settling below the 1.0850 level, as well as the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). The pair tested the 1.0800 zone and now faces the risk of further downsides in the near term. While a potential resistance level lies near 1.0835, a significant hurdle for the bulls is at 1.0850. A successful close above this level could lead to further upward movement, potentially reaching 1.0920. However, failure to break above may result in continued decline. Immediate support is anticipated near the 1.0800 level, with a major support level at 1.0780. A breach below 1.0780 could see the pair sliding towards the 1.0750 support, with further losses potentially pushing towards the 1.0650 level.
In addition to EUR/USD, GBP/USD also experienced a significant decline, falling below the 1.2750 support level. This drop indicates a bearish trend for the pound against the US dollar. The future of GBP/USD remains uncertain, as it attempts to find a stable support level to prevent further decline.
Gold Price Consolidation
Gold prices have shown consolidation after reaching above the $2,200 mark, followed by a correction and stabilization near $2,150. While the bulls initially pushed the price higher, the subsequent correction suggests a period of consolidation. The future movement of gold prices is unpredictable, as market forces continue to influence its value.
The US New Home Sales for February 2024 are projected to have a slight increase of +0.3% compared to the previous reading of +1.5%. This data could potentially impact the market sentiment and influence the movements of EUR/USD, GBP/USD, and gold prices in the coming days.
The recent decline of EUR/USD, GBP/USD, and the consolidation of gold prices reflect the ongoing volatility in the financial markets. Traders and investors are advised to closely monitor the technical indicators and economic releases to make informed decisions regarding their positions in these assets.
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