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EUR/USD Eyes Further Gains

June 28, 2022

  • EUR/USD started to recover after testing support near 1.0360.
  • Bullish trend line has formed support near 1.0535.

The Euro, US Dollar pair declined sharply from the 1.0780 level. EUR/USD traded as low as 1.0359 before starting a fresh rally.

EUR/USD 4-Hour Chart (Trend: BULLISH)

On the 4-hour chart, the EUR/USD pair was able to break above the 1.0420 resistance level. There was also a break above the 38.2% Fibonacci retracement level of downward move from the swing high of 1.0773 to the swing low of 1.0359. The quote even broke above the 1.0550 resistance level, with the quote now trading near 1.0575. 

For the pair to continue bullish, the quote will first need to test resistance near 1.0600, and both the 100-MA (red) and 200-MA (blue). This is also close to the 50% Fibonacci retracement level (of the 1.0773 high to the 1.0359 low). Above this there is further resistance near 1.0650. Further gains could see the quote climb up as high as the 1.0750 level.

In contrast, if the pair turns bearish, the quote will first need to test support near the 1.0535 level. This is also close to the bullish trend line. Below this there is further support near 1.0450. Further losses could see the quote drop back down as far as the 1.0400 level.

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