EUR/USD and EUR/JPY Could Extend Downsides

EUR/USD started a fresh decline from the 1.0750 resistance. EUR/JPY could extend downsides if there is a move below the 136.50 support.

Important Takeaways for EUR/USD and EUR/JPY

· The Euro failed to clear the 1.0750 resistance and started a fresh decline.

· There is a key bullish trend line forming with support near 1.0500 on the hourly chart.

· EUR/JPY started a downside correction from the 138.00 resistance zone.

· A major bearish trend line is forming with resistance near 137.20 on the hourly chart.

EUR/USD Technical Analysis

The Euro made a couple of attempts to clear the 1.0750 resistance zone against the US Dollar. However, the EUR/USD pair failed to gain strength above 1.0750 and started a fresh decline.

The pair declined below the 1.0600 support and the 50 hourly simple moving average. The pair even moved below the 1.0550 support level. A low was formed near 1.0470 on FXOpen before the pair started a short-term upside correction.

There was a move above the 1.0520 resistance level. It corrected above the 23.6% Fib retracement level of the key drop from the 1.0758 high to 1.0470 low.

On the upside, the pair is facing resistance near the 1.0580 level. It is near the 38.2% Fib retracement level of the key drop from the 1.0758 high to 1.0470 low. The next major resistance is near the 1.0620 level.

A clear break above the 1.0620 resistance could push EUR/USD towards 1.0700. If the bulls remain in action, the pair could revisit the 1.0750 resistance zone in the near term.

On the downside, the pair might find support near the 1.0500 level. There is also a key bullish trend line forming with support near 1.0500 on the hourly chart. If there is a downside break below the 1.0500 support, the pair might accelerate lower. The next major support sits near the 1.0470 level, below which there is a risk of a larger decline.

EUR/JPY Technical Analysis

The Euro started a major increase above the 136.00 resistance against the Japanese Yen. The EUR/JPY pair gained pace and was able to surpass the 137.50 resistance zone.

However, the pair faced sellers near the 138.00 zone. It traded as high as 137.99 before it started a downside correction. There was a move below the 137.50 level and the 50 hourly simple moving average.

The pair declined below the 38.2% Fib retracement level of the upward move from the 134.78 swing low to 137.99 high. There is also a major bearish trend line is forming with resistance near 137.20 on the hourly chart.

The next major support is near the 136.50 level. The main support sits near the 136.35 level. It is near the 50% Fib retracement level of the upward move from the 134.78 swing low to 137.99 high.

Any more losses could lead the pair towards the 135.00 support level in the near term. On the upside, an immediate resistance is near the 137.20 level and the trend line. If there is an upside break above the 137.20 resistance, the pair could test the 137.80 resistance.

The next major resistance could be near the 138.00 level, above which the pair could gain bullish momentum. In the stated case, the pair could rise towards the 139.20 level.

This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.