The EUR/USD pair has recently experienced a recovery wave, starting above the 1.0650 resistance level. This movement was significant as it broke a major bearish trend line with resistance at 1.0720 on the 4-hour chart. The Euro found support near 1.0600 against the US Dollar, leading to a positive upward trend.
In addition to the EUR/USD recovery, the GBP/USD pair also rallied and tested the 1.2620 resistance zone. This indicates a general upward trend in the forex market, potentially influenced by a variety of factors including economic data releases.
On the other hand, oil prices have been experiencing losses, trading below the $78.80 support level. This downward trend suggests bearish sentiment in the oil market, potentially impacted by global economic conditions and demand fluctuations.
Analyzing the EUR/USD pair’s technical indicators, it is clear that the pair is currently struggling to clear the 76.4% Fib retracement level. This suggests a potential barrier to further upward movement. Immediate support levels are identified near 1.0750 and the 200 simple moving average (green, 4-hour), with major support at 1.0720. A downside break below the 1.0720 support could lead to further losses, potentially testing 1.0685 and the 100 simple moving average (red, 4-hour). It is crucial to closely monitor these support and resistance levels to gauge the future direction of the pair.
Germany’s Services PMI for April 2024 is forecasted at 53.3, unchanged from the previous reading, while the Euro Zone Services PMI for the same period is expected to be 52.9, also consistent with the previous data. These economic releases can have a significant impact on currency markets, influencing investor sentiment and trading volumes. Traders should pay close attention to these releases to anticipate potential market movements.
Overall, the recent movements in the EUR/USD pair and oil prices are indicative of the broader economic landscape. Traders and investors should carefully analyze technical indicators, economic data releases, and global market trends to make informed decisions and navigate the complex financial markets effectively.
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