EUR/USD and EUR/JPY: Euro Gaining Momentum

Aayush Jindal -

EUR/USD started a fresh increase above the 1.1800 and 1.1820 resistance levels. EUR/JPY is also showing positive signs and trading nicely above the 124.50 support zone.

Important Takeaways for EUR/USD and EUR/JPY

  • The Euro started a strong upward move after it found support near 1.1685 and 1.1700.
  • There was a break above a major bearish trend line with resistance near 1.1750 on the hourly chart of EUR/USD.
  • EUR/JPY also climbed higher nicely above the 124.00 and 124.50 resistance levels.
  • There was a break above a crucial bearish trend line with resistance near 123.50 on the hourly chart.

EUR/USD Technical Analysis

After a steady decline, the Euro found support near the 1.1685 and 1.1700 levels against the US Dollar. A low was formed near 1.1688 on FXOpen and recently, the EUR/USD pair started a fresh increase.

It broke many important hurdles near the 1.1720 and 1.1750 levels to move into a positive zone. Moreover, there was a break above a major bearish trend line with resistance near 1.1750 on the hourly chart of EUR/USD.

The pair surged above the 1.1800 resistance and settled well above the 50 hourly simple moving average. During the rise, the pair surpassed the 76.4% Fib retracement level of the main decline from the 1.1830 high to 1.1688 low.

It is now trading above the 1.1830 swing high and showing a lot of positive signs. The next key resistance is near the 1.1865 level. It is close to the 1.236 Fib extension level of the main decline from the 1.1830 high to 1.1688 low.

Any further gains could lead the pair towards the 1.1900 resistance level. Conversely, the pair might correct lower from 1.1850 or 1.1865. An initial support is near the 1.1820 level.

The next key support is near the 1.1800 level or the 50 hourly simple moving average, below which the pair is likely to test the 1.1750 zone.

EUR/JPY Technical Analysis

The Euro also followed a similar pattern from the 123.02 low against the Japanese Yen. The EUR/JPY pair broke the 123.50 and 124.00 resistance levels to move into a positive zone.

The upward move was such that the pair climbed above the 124.50 resistance and settled nicely above the 50 hourly simple moving average. During the rise, there was a break above a crucial bearish trend line with resistance near 123.50 on the hourly chart.

A high is formed near the 124.99 level and the pair is currently correcting lower. It broke the 124.80 level, and the 23.6% Fib retracement level of the recent wave from the 124.10 low to 124.99 high. An initial support is 124.65 level.

The first major support is near the 124.50 level since it is close to the 50% Fib retracement level of the recent wave from the 124.10 low to 124.99 high.

Any further losses may perhaps lead the pair towards the 124.30 support level and the 50 hourly simple moving average. The next key support is at 124.00. On the upside, the EUR/JPY pair is likely to face hurdles near 124.75 and a connecting bearish trend line.

A successful close above the trend line resistance and then 124.80 might open the doors for a push towards the 125.00 and 125.20 levels in the coming sessions.