EUR/USD started a recovery wave from the 1.0850 zone. EUR/JPY climbed higher steadily and might rise further above 130.00.
Important Takeaways for EUR/USD and EUR/JPY
· The Euro is attempting an upside correction above the 1.0950 level.
· There is a key bullish trend line forming with support near 1.0940 on the hourly chart.
· EUR/JPY gained bullish momentum after it broke the 127.50 resistance zone.
· There is a major bullish trend line forming with support near 129.55 on the hourly chart.
EUR/USD Technical Analysis
The Euro found support near the 1.0850 zone against the US Dollar. The EUR/USD pair started a recovery wave and was able to climb above the 1.0900 level.
The pair even cleared the 1.0950 level and the 50 hourly simple moving average. Finally, the pair traded spiked to 1.1019 before it corrected gains. A low is formed near 1.0926 on FXOpen and the pair is now moving higher.
It moved above the 1.0950 level and tested the 50% Fib retracement level of the recent decline from the 1.1016 high to 1.0926 low.
On the upside, the pair is facing resistance near the 1.1000 level. It is near the 76.4% Fib retracement level of the recent decline from the 1.1016 high to 1.0926 low. The next major resistance is near the 1.1020 level.
A clear break above the 1.1020 resistance could push EUR/USD towards 1.1050. If the bulls remain in action, the pair could rise above the 1.1100 resistance zone in the near term.
On the downside, the pair might find support near the 1.0950 level. There is also a key bullish trend line forming with support near 1.0940 on the hourly chart. If there is a downside break below the 1.0940 support, the pair might accelerate lower. The next major support sits near the 1.0925 level, below which there is a risk of a larger decline.
EUR/JPY Technical Analysis
The Euro started a major increase above the 127.50 resistance against the Japanese Yen. The EUR/JPY pair gained pace and was able to surpass the 128.80 resistance zone.
It even climbed above the 129.20 level and the 50 hourly simple moving average. It traded as high as 130.02 and is currently consolidating gains. It already tested the 23.6% Fib retracement level of the upward move from the 127.83 swing low to 130.02 high.
There is also a major bullish trend line forming with support near 129.55 on the hourly chart. On the upside, an immediate resistance is near the 130.00 level. If there is an upside break above the 130.00 resistance, the pair could test the 130.50 resistance.
The next major resistance could be near the 131.20 level, above which the pair could gain bullish momentum. In the stated case, the pair could rise towards the 132.50 level. Any more gains could lead the pair towards the 133.00 level in the near term.
If not, the pair might start a downside correction below 129.50. The next major support is near the 128.95 level. It is near the 50% Fib retracement level of the upward move from the 127.83 swing low to 130.02 high. Any more losses could lead the pair towards the 128.20 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.
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