EUR/USD Turns Red, More Losses Ahead?

#OPINIONLEADER#

Key Highlights

• EUR/USD started a major decline from well above 1.1350.
• A major bearish trend line is forming with resistance near 1.1200 on the 4-hours chart.
• GBP/USD could extend decline if there is a break below 1.3350.
• AUD/USD and NZD/USD saw a major drop.

EUR/USD Technical Analysis

The Euro started a major decline from well above 1.1400 against the US Dollar. EUR/USD traded below the 1.1320 support to move into a bearish zone.

Looking at the 4-hours chart, the pair gained below the 1.1280 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The bears gained strength for a move below the 1.1220 support. The pair even declined below the 1.1200 support. It is now consolidating losses above the 1.1120 level. If there is a downside break, the pair could continue to move down.

The next major support is near the 1.1050 level, below which it could test 1.1000. On the upside, an immediate resistance is near the 1.1180 level.

The first major resistance is near the 1.1200 level. A close above 1.1200 could open the doors for a steady recovery wave towards the 1.1250 level.

Looking at GBP/USD, the pair started a strong decline below the 1.3500 support zone. Similarly, AUD/USD dropped below the 0.7050 support zone and spiked below 0.7000.

Economic Releases

• Euro Zone Gross Domestic Product Q4 2021 (Preliminary) (QoQ) – Forecast 0.3%, versus 2.2% previous.
• German Consumer Price Index for Jan 2022 (YoY) (Prelim) – Forecast +4.7%, versus +5.7% previous.
• German Consumer Price Index for Jan 2022 (MoM) (Prelim) – Forecast -0.3%, versus +0.5% previous.