EUR/USD struggled to clear the 1.1900 resistance and corrected lower. EUR/JPY is showing positive signs and it could rise again if it clears the 124.50 resistance.
Important Takeaways for EUR/USD and EUR/JPY
- The Euro struggled to stay above the 1.1900 resistance and corrected below 1.1880.
- There was a break below a key bullish trend line with support near 1.1865 on the hourly chart of EUR/USD.
- EUR/JPY spiked above the 125.00 resistance level before corrected lower.
- There is a major contracting triangle forming with resistance near 124.45 on the hourly chart.
EUR/USD Technical Analysis
This past week, the Euro started a decent upward move from the 1.1640 support zone against the US Dollar. The EUR/USD pair climbed higher above the 1.1750 resistance and it even surpassed the 1.1820 barrier.
There was also a break above the 1.1880 resistance, but the pair struggled to stay above the 1.1900 level. A high was formed near 1.1919 on FXOpen before there was a downside correction.
The pair traded below the 1.1850 support level and the 50 hourly simple moving average. During the rise, there was a break below a key bullish trend line with support near 1.1865 on the hourly chart of EUR/USD.
The pair traded as low as 1.1779 and it is currently correcting higher. There was a break above the 1.1800 level, plus the pair traded above the 23.6% Fib retracement level of the downward move from the 1.1919 high to 1.1779 low.
It is now testing the 1.1835 resistance. The first major resistance is near the 1.1850 level and the 50 hourly simple moving average. A clear break above the 1.1850 resistance zone could open the doors for a fresh increase above the 1.1900 level.
Conversely, the pair could start a fresh decline from the 1.1840 and 1.1850 resistance level. An initial support is near the 1.1800 level, below which the pair might even decline below the 1.1779 low.
EUR/JPY Technical Analysis
The Euro started a strong rise after it broke the 123.00 and 123.20 resistance levels against the Japanese Yen. The EUR/JPY pair gained traction and it climbed higher above the 124.00 level.
There was also a break above the 124.50 level and the 50 hourly simple moving average. Finally, there was a spike above the 125.00 level. A high is formed near 125.11 and the pair is currently correcting lower.
It broke the 124.50 support level, plus traded below the 38.2% Fib retracement level of the upward move from the 122.89 swing low to 125.11 high.
It seems like there is a major contracting triangle forming with resistance near 124.45 on the hourly chart. If there is upside break above the triangle resistance and 124.50, there are chances of a strong rise in the near term.
The next resistance is near the 125.00 level, above which the bulls might aim a test of the 125.50 level. Conversely, there could be a downside break below the triangle support at 124.15.
The first major support is near the 124.00 level since it is close to the 50% Fib retracement level of the upward move from the 122.89 swing low to 125.11 high. The 50 hourly simple moving average is also above the 124.00 level.
Therefore, a break below 124.00 might call for a sharp decline towards the 123.20 and 123.00 support levels in the near term.