The EUR/USD pair has shown signs of recovery above the 1.0650 resistance level, indicating a positive trend in the market. The break of a major bearish trend line at 1.0720 on the 4-hour chart suggests a shift in momentum towards a bullish trajectory. However, the pair is currently facing resistance at the 76.4% Fib retracement level, which could pose a challenge for further upside movement. The next major support stands at 1.0720, and a downside break below this level might lead to a test of 1.0685 and the 100 simple moving average. Further losses could potentially drive the pair towards the 1.0600 mark.
Meanwhile, the GBP/USD pair has rallied and tested the 1.2620 resistance zone, reflecting a strong bullish sentiment in the market. The price action indicates a potential upside movement towards higher resistance levels. Traders should keep a close watch on the price action near the 1.2620 level, as a clear break above this resistance could signal further gains in the pair. On the downside, immediate support is seen near the 1.2550 level, followed by the 200 simple moving average on the 4-hour chart.
On the commodities front, oil prices have extended losses and traded below the $78.80 support level. The downward movement suggests a bearish trend in the oil market, with sellers potentially targeting the $76.20 level. Traders should exercise caution and closely monitor the price action for any signs of a trend reversal.
In terms of economic releases, Germany’s Services PMI for April 2024 is forecasted at 53.3, in line with the previous reading. Similarly, the Euro Zone Services PMI for the same period is expected to be 52.9, unchanged from the previous data. These figures provide insight into the performance of the services sector in both the German and Euro Zone economies, offering valuable information for traders and investors.
The market trends indicate a mix of opportunities and challenges for traders. While the EUR/USD pair shows potential for a bullish breakout, the GBP/USD pair and oil prices suggest a cautious approach. Economic releases also play a crucial role in shaping market sentiments, emphasizing the need for thorough analysis and risk management strategies. Traders should stay informed and adapt their trading strategies accordingly to navigate the dynamic market environment effectively.