EUR/USD started a fresh decline and traded below 1.0200. EUR/JPY is attempting a recovery wave and might rally if it clears 137.00.
Important Takeaways for EUR/USD and EUR/JPY
· The Euro started a major below the 1.0220 and 1.0200 support levels.
· There was a break above a key bearish trend line with resistance near 1.0165 on the hourly chart.
· EUR/JPY started an upside correction from the 135.00 support zone.
· There is a major bearish trend line forming with resistance near 136.60 on the hourly chart.
EUR/USD Technical Analysis
The Euro failed to clear the 1.0360 resistance against the US Dollar. The EUR/USD pair started a major decline below the 1.0300 and 1.0250 support levels.
There was a clear move below the 1.0220 level and the 50 hourly simple moving average. The pair even settled below the 1.0200 level. A low was formed near 1.0122 on FXOpen and the pair is now consolidating losses.
The pair recovered above 1.0150 and tested the 23.6% Fib retracement level of the downward move from the 1.0364 swing high to 1.0122 low.
Besides, there was a break above a key bearish trend line with resistance near 1.0165 on the hourly chart. On the upside, the pair is facing resistance near the 1.0180 level and the 50 hourly simple moving average.
A clear move above the 1.0180 resistance might send the price towards 1.0220. The next major resistance is near the 1.0240 level. It is near the 50% Fib retracement level of the downward move from the 1.0364 swing high to 1.0122 low. If the bulls remain in action, the pair could revisit the 1.0300 resistance zone in the near term.
On the downside, the pair might find support near the 1.0150 level. The next major support sits near the 1.0120 level. If there is a downside break below the 1.0120 support, the pair might accelerate lower in the coming sessions.
EUR/JPY Technical Analysis
The Euro also started a fresh decline from the 138.00 resistance against the Japanese Yen. The EUR/JPY pair gained pace and traded below the 136.50 support level.
However, the pair found support near the 135.00 zone. A base was formed and the pair started a recovery wave above the 135.50 zone. The pair even broke the 136.00 level and the 50 hourly simple moving average.
There was a move above the 50% Fib retracement level of the downward move from the 137.71 swing high to 134.94 low. An immediate resistance on the upside is near the 136.60 level.
There is also a major bearish trend line forming with resistance near 136.60 on the hourly chart. The trend line is near the 61.8% Fib retracement level of the downward move from the 137.71 swing high to 134.94 low.
The next major resistance could be near the 137.00 level. If there is an upside break above the 137.00 resistance, the pair could test the 137.80 resistance. Any more gains might send the pair towards the 138.50 level.
If not, the pair could start a fresh decline below the 136.00 support. The next major support is near the 135.50 level. The main support sits near the 135.00 level. Any more losses could lead the pair towards the 133.50 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, Innovative Broker of 2022, according to the IAFT
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.