EUR/USD gains momentum but still confined in range

Key highlights:

• EUR/USD started a recovery wave above the 1.0650 resistance.
• It broke a major bearish trend line with resistance at 1.0720 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair broke a major bearish trend line with resistance at 1.0720. There was a decent increase above the 50% Fib retracement level of the downward move from the 1.0885 swing high to the 1.0601 low.

There was a close above the 100 simple moving average (red, 4-hour) and tested the 200 simple moving average (green, 4-hour). The pair even tested the 1.0820 resistance.

It seems like the pair is now struggling to clear the 76.4% Fib retracement level of the downward move from the 1.0885 swing high to the 1.0601 low. A clear move above the 1.0820 resistance might send it toward the 1.0880 level.

Immediate support is near the 1.0750 level and the 200 simple moving average (green, 4-hour). The next major support is at 1.0720.

If there is a downside break below the 1.0720 support, the pair might test 1.0685 and the 100 simple moving average (red, 4-hour). Any more losses might send the pair toward 1.0600.