EUR/USD started a fresh decline and traded below 1.0500. EUR/JPY is recovering higher and might correct above the 141.20 resistance zone.
Important Takeaways for EUR/USD and EUR/JPY
· The Euro started a major decline from the 1.0780 and 1.0800 resistance levels.
· There is a key bearish trend line forming with resistance near 1.0445 on the hourly chart.
· EUR/JPY formed a base near 139.40 and started an upside correction.
· There is a major bearish trend line forming with resistance near 141.20 on the hourly chart.
EUR/USD Technical Analysis
The Euro failed to clear the 1.0780 resistance against the US Dollar. The EUR/USD pair started a major decline below the 1.0650 and 1.0600 support levels.
There was a clear move below the 1.0550 level and the 50 hourly simple moving average. The pair even settled below the 1.0500 level. A low was formed near 1.0397 on FXOpen and the pair is now consolidating losses.
On the upside, the pair is facing resistance near the 1.0445 level. There is also a key bearish trend line forming with resistance near 1.0445 on the hourly chart.
The next major resistance is near the 1.0485 level. It is near the 23.6% Fib retracement level of the downward move from the 1.0773 swing high to 1.0397 low. A clear break above the 1.0485 resistance could push EUR/USD towards 1.0540.
If the bulls remain in action, the pair could revisit the 1.0585 resistance zone in the near term. The 50% Fib retracement level of the downward move from the 1.0773 swing high to 1.0397 low is near the 1.0585 level.
On the downside, the pair might find support near the 1.0420 level. The next major support sits near the 1.0400 level. If there is a downside break below the 1.0400 support, the pair might accelerate lower in the coming sessions.
EUR/JPY Technical Analysis
The Euro also started a fresh decline from the 144.25 resistance against the Japanese Yen. The EUR/JPY pair gained pace and traded below the 142.00 support level.
The pair even broke the 140.00 level and the 50 hourly simple moving average. It traded as low as 139.38 and is currently correcting losses. There was a move above the 23.6% Fib retracement level of the downward move from the 144.24 swing high to 139.38 low.
It is now trading near the 144.20 resistance. There is also a major bearish trend line forming with resistance near 141.20 on the hourly chart.
If there is an upside break above the 141.20 resistance, the pair could test the 141.80 resistance. It is near the 50% Fib retracement level of the downward move from the 144.24 swing high to 139.38 low. The next major resistance could be near the 142.50 level, above which the pair could gain bullish momentum. In the stated case, the pair could rise towards the 143.50 level.
If not, the pair could start a fresh decline below the 140.50 support. The next major support is near the 140.00 level. The main support sits near the 139.40 level. Any more losses could lead the pair towards the 138.00 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.
* FXOpen International, best ECN broker of 2021, according to the IAFT