- The EUR / USD pair reached 1.2150 and started a downward correction.
- It broke the major bullish trendline with support near 1.2100 on the 4 hours chart.
Technical analysis of EUR / USD
On the 4-hour chart, the pair began a downward correction from the 1.2150 high. It dropped below the support levels 1.2120 and 1.2100. There was also a break below the major bullish trendline with support around 1.2100.
It traded below the 23.6% Fibonacci retracement level of the major uptrend from the swing low of 1.1702 to the high of 1.2150. The pair is currently trading well below 1.2100.
Immediate support is found near the 1.2000 zone and the 100 simple moving average (red, 4 hours). The next major support is found around the 1.1925 level and the 200 simple moving average (green, 4 hours).
The 50% Fibonacci retracement level of the major upside movement from the swing low of 1.1702 to the high of 1.2150 is also near 1.1926. Further losses could start a strong decline below 1.1900.
On the other hand, initial resistance is found near levels 1.2080 and 1.2100. The main resistance is now around 1.2150, above which the EUR / USD pair could resume its uptrend.