EUR/USD started a fresh increase above the 1.2000 and 1.2050 resistance levels. EUR/JPY also gained momentum and it is now trading well above 130.00.
Important Takeaways for EUR/USD and EUR/JPY
- The Euro formed a base above 1.2000 and started a fresh increase above 1.2050.
- There is a key bullish trend line forming with support near 1.2075 on the hourly chart.
- EUR/JPY is also trading in a positive zone above the 131.00 zone.
- There is a major bullish trend line forming with support near 131.25 on the hourly chart.
EUR/USD Technical Analysis
There was a steady increase in the Euro started above the 1.1950 resistance against the US Dollar. The EUR/USD pair broke the 1.2000 and 1.2050 resistance levels to move into a positive zone.
There was also a break above the 1.2100 zone and the pair settled above the 50 hourly simple moving average. A high was formed at 1.2116 on FXOpen before there was a downside correction.
The pair traded as low as 1.2056 and it is now attempting a fresh increase. There was already a spike above the 50% Fib retracement level of the recent decline from the 1.2116 high to 1.2056 low. However, the pair is struggling to settle above the 1.2085 zone and the 50 hourly simple moving average.
The next major resistance is near the 1.2095 level. It is near the 61.8% Fib retracement level of the recent decline from the 1.2116 high to 1.2056 low.
Any more gains could set the pace for a fresh high above the 1.2116 level in the near term. The next key resistance could be near the 1.2140 level. On the downside, there is a key bullish trend line forming with support near 1.2075 on the hourly chart.
If there is a downside break, EUR/USD might continue to move down towards the 1.2050 support. Any more losses could open the doors for a test of the 1.2000 support zone in the near term.
EUR/JPY Technical Analysis
The Euro also followed a strong bullish path above the 130.00 resistance zone against the Japanese Yen. The EUR/JPY pair even traded above the 130.50 resistance level to move into a positive zone.
It cleared the 131.00 level and settled well above the 50 hourly simple moving average. It traded as high as 131.58 and the pair is now consolidating gains. If there is a downside correction, an initial support is near the 131.40 level.
The 23.6% Fib retracement level of the upward move from the 130.58 swing low to 131.58 high is also near the 131.35 level.
Moreover, there is a major bullish trend line forming with support near 131.25 on the hourly chart. The next major support is near the 131.00 zone. The 50% Fib retracement level of the upward move from the 130.58 swing low to 131.58 high is also near the 131.00 zone.
On the upside, there is a key resistance forming near the 131.60 level. A clear break above the 131.60 zone could set the pace for a sharp increase.
In the stated case, EUR/JPY may possibly rise steadily towards the 132.00 level. Any more gains could open the doors for a decent increase towards the 132.80 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.
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