EUR/USD formed a support base above 1.1780 and corrected higher. EUR/JPY is also rising and it could gain pace above the 130.00 resistance.
Important Takeaways for EUR/USD and EUR/JPY
- The Euro extended its decline towards the 1.1750 level before recovering higher.
- There was a break above a key contracting triangle with resistance near 1.1805 on the hourly chart.
- EUR/JPY climbed higher nicely and it even settled above the 129.50 zone.
- There is a major contracting triangle forming with support near 129.70 on the hourly chart.
EUR/USD Technical Analysis
The Euro extended its decline below 1.1800 against the US Dollar. However, the EUR/USD pair remained well bid above the 1.1750 support zone.
The pair formed a base near 1.1760 and it recently started a decent upward move. It surpassed the 1.1800 resistance zone and the 50 hourly simple moving average. There was also a break above a key contracting triangle with resistance near 1.1805 on the hourly chart.
The pair traded as high as 1.1841 on FXOpen and it is now correcting gains. There was a break below the 23.6% Fib retracement level of the recent wave from the 1.1770 swing low to 1.1841 high.
The pair is now finding bids near the 1.1810 support zone. The next key support is near the 1.1805 level. It is near the 50% Fib retracement level of the recent wave from the 1.1770 swing low to 1.1841 high.
Any more losses might call for a move towards the 1.1780 support. Any more losses might lead EUR/USD towards the 1.1750 support zone. On the upside, an initial resistance is near the 1.1830 level. The first major resistance is near the 1.1850 level. Any more gains could set the pace for a move towards the 1.1900 level. The next major resistance is near the 1.1920 level.
EUR/JPY Technical Analysis
The Euro traded towards the 128.65 support level before it started a fresh increase against the Japanese Yen. The EUR/JPY pair broke the 128.80 and 129.20 resistance levels to move into a positive zone.
The pair even traded above the 129.50 level and the 50 hourly simple moving average. Finally, it spiked above the 130.00 resistance and traded as high as 130.34. Recently, there was a downside correction below the 130.00 level and the 50 hourly simple moving average.
However, the bulls are protecting the 129.50 support. A low is formed near 129.54 and the pair is now consolidating losses. It recovered above the 23.6% Fib retracement level of the recent drop from the 130.34 high to 129.54 low.
An immediate resistance is near the 130.00 level. It is near the 50% Fib retracement level of the recent drop from the 130.34 high to 129.54 low. The first major resistance is near the 130.20 level.
A close above the 130.20 level could set the pace for a larger increase in the near term. In the stated case, the pair could rise towards the 131.00 level. On the downside, an initial support is near the 129.75 level.
There is also a major contracting triangle forming with support near 129.70 on the hourly chart. The next major support is near the 129.50 level. Any more losses could lead the pair towards the 128.50 support.
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.
* FXOpen International, best ECN broker of 2021, according to the IAFT