EUR/USD started a strong increase and it surged above the 1.2000 resistance. EUR/JPY is also gaining momentum and it is trading well above the 125.00 resistance.
Important Takeaways for EUR/USD and EUR/JPY
- The Euro started a strong increase above the 1.1950 and 1.2000 resistance levels.
- There was a break above a key connecting resistance trend line at 1.2030 on the hourly chart of EUR/USD.
- EUR/JPY followed a similar pattern and broke the main 125.00 resistance.
- There was a break above a major rising channel with resistance near 125.30 on the hourly chart.
EUR/USD Technical Analysis
This week, the Euro formed a strong support zone above the 1.1920 and 1.1950 levels against the US Dollar. The EUR/USD pair started a strong increase and it broke the main 1.2000 resistance level.
The pair even gained strength above 1.2020 and settled above the 50 hourly simple moving average. Moreover, there was a break above a key connecting resistance trend line at 1.2030 on the hourly chart of EUR/USD.
The pair even surpassed the 1.2050 resistance and traded as high as 1.2079 recently on FXOpen. It seems like the pair might continue to move higher above the 1.2080 level.
The next key resistance is near the 1.2120 level, above which the pair could test 1.2150. If there is a downside correction, an initial support could be 1.2050 or the 23.6% Fib retracement level of the recent increase from the 1.1960 swing low to 1.2079 high.
The next major support is near the 1.2030 level. Any more losses could lead the pair towards the 1.2020 support or the 50% Fib retracement level of the recent increase from the 1.1960 swing low to 1.2079 high.
EUR/JPY Technical Analysis
The Euro also followed a similar path above 124.00 against the Japanese Yen. The EUR/JPY pair broke the main 125.00 resistance level to move into a positive zone.
There was also a close above the 125.20 level and the 50 hourly simple moving average. Moreover, there was a break above a major rising channel with resistance near 125.30 on the hourly chart.
The pair gained strength above the 125.50 level and it even broke the 126.00 level. A high is formed near 126.14 and the pair is currently consolidating gains. An initial support is near the 125.85 level. It is close to the 23.6% Fib retracement level of the recent increase from the 124.86 swing low to 126.14 high.
The next major support is near the 125.65 level (a multi-touch zone). Any more losses could lead the pair towards the 125.50 support. It is close to the 50% Fib retracement level of the recent increase from the 124.86 swing low to 126.14 high.
The main uptrend support seems to be forming near the 125.00 level since it is also close to the 50 hourly simple moving average. On the upside, the pair could accelerate higher if it clears the 126.15 and 126.20 levels.
The next resistance could be near the 126.80 level. Any more upsides might lead the EUR/JPY higher further higher above the 127.00 level. In the stated case, the bulls may possibly aim a larger increase towards the 128.50 and 129.20 resistance levels in the coming days.
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