EUR/USD retreats from highs while key support holds firm

Key highlights

• EUR/USD struggled near 1.1710 and started a downside correction.
• It traded below a bullish trend line with support at 1.1655 on the 4-hour chart.

EUR/USD technical analysis

Looking at the 4-hour chart, the pair traded below a bullish trend line with support at 1.1655. There was a clear move below the 50% Fib retracement level of the upward move from the 1.1511 swing low to the 1.1710 high.

The pair even spiked below the 100 simple moving average (red, 4-hour). If there are more losses, the pair might find bids near the 76.4% Fib retracement level at 1.1558.

The first major support could be near 1.1520 and the 200 simple moving average (green, 4-hour). A downside break and close below 1.1520 might start a major leg down. In the stated case, the bears could aim for a move to 1.1440. Any more losses could open the door for a test of 1.1420.

On the upside, EUR/USD could face resistance near the 1.1620 level. The next major resistance might be 1.1660. A close above 1.1660 could start another steady increase. In the stated case, the bulls could aim for a move to 1.1710. Any further gains might open the door for a test of 1.1750.