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EUR/USD stalls near 1.1500 as traders watch key support levels
The pair failed to hold above the 4-hour 50% Fibonacci retracement and is positioned for possible support tests near 1.1380 and 1.1350.
EUR/USD climbed back above 1.1420 against the US dollar, but technical analysis points to hurdles in the 1.1475 to 1.1500 area. Action Forex said the move ran into resistance after the pair failed to clear the 50% Fibonacci retracement of the decline from the 1.1622 swing high to the 1.1324 low.
On the 4-hour chart, the euro also struggled to settle above the 100 simple moving average, while remaining below the 200 simple moving average. Action Forex outlined potential downside levels if EUR/USD resumes lower, including support around 1.1380 and a first major support near 1.1350, with a break and close below 1.1350 potentially targeting 1.1325 and then 1.1280.
The analysis also flagged a rising channel or possible bearish pennant formation with resistance at 1.1500. A close above channel resistance could reduce selling pressure, with bulls then eyeing a move toward 1.1580.
Action Forex added that GBP/USD similarly recovered some losses, tested 1.3450 resistance, and is consolidating after that move. Separately, it noted WTI crude oil had difficulty staying above $75.00 and trimmed gains.
Latest closeWTI crude $71.51 ▼0.8%|EUR/USD 1.142 ▼0.0%|GBP/USD 1.340 ▲0.0%