EUR/USD extended its decline to 1.1565 before correcting higher. EUR/JPY is rising, but it is facing hurdles near 129.50 and 129.75.
Important Takeaways for EUR/USD and EUR/JPY
· The Euro gained bearish momentum below 1.1650 and 1.1600.
· There is a major bearish trend line forming with resistance near 1.1600 on the hourly chart.
· EUR/JPY is attempting a recovery wave above the 129.20 resistance level.
· There is a key bullish trend line forming with support near 129.00 on the hourly chart.
EUR/USD Technical Analysis
The Euro started a major decline after it struggled to clear the 1.1750 resistance against the US Dollar. The EUR/USD pair broke the 1.1650 support zone to move into a bearish zone.
The pair even traded below the 1.1600 support and settled below the 50 hourly simple moving average. A low was formed near 1.1563 on FXOpen and the pair is now correcting losses. There was a break above the 1.1600 level.
The pair even spiked above the 1.1620 resistance level, but it faced a strong resistance near the 1.1640 level. A high was formed near 1.1639 and the pair corrected lower.
It traded below the 50% Fib retracement level of the upward move from the 1.1563 swing low to 1.1639 high. There is also a major bearish trend line forming with resistance near 1.1600 on the hourly chart.
It is now consolidating near the 1.1590 level and below the 50 hourly simple moving average. An immediate resistance is near the 1.1600 level. The main resistance is forming near the 1.1640 and 1.1650 levels. A clear break above the 1.1650 resistance could push EUR/USD towards 1.1750.
On the downside, the 1.1665 level is a major support. Any more losses might lead EUR/USD towards the 1.1520 support zone in the near term. The next major support sits near the 1.1500 level.
EUR/JPY Technical Analysis
The Euro started a fresh decline from well above 130.00 against the Japanese Yen. The EUR/JPY pair traded below the 129.20 support zone to move into a bearish zone.
There was a break below the 129.00 support zone and the 50 hourly simple moving average. The pair tested the 128.50 zone and a low is formed near 128.54. It is now attempting a recovery wave above the 129.00 resistance.
It surpassed the 23.6% Fib retracement level of the key decline from the 130.47 high to 128.54 low. An immediate resistance is near the 129.50 level.
The 50% Fib retracement level of the key decline from the 130.47 high to 128.54 low is also near the 129.50 level. If there is an upside break above the 129.50 resistance, the pair could start a decent recovery above 130.00.
The next major resistance could be near the 130.80 level. Any more gains could lead the pair towards the 131.50 level. On the downside, an initial support is near the 129.20 level.
The first major support is near the 129.00 level. There is also a key bullish trend line forming with support near 129.00 on the hourly chart. Any more losses could lead the pair towards the 128.50 support level in the near term.
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.
