EUR/USD and EUR/JPY: Facing Hurdles, Risk of More Losses

FXOpen

EUR/USD is currently trading in a bearish zone below the 1.1850 pivot level. EUR/JPY is currently correcting higher, but it is likely to face hurdles near 125.00.

Important Takeaways for EUR/USD and EUR/JPY

  • The Euro started a steady decline below the 1.1910 and 1.1850 support levels.
  • There is a key bearish trend line forming with resistance near 1.1805 on the hourly chart of EUR/USD.
  • EUR/JPY traded below the main 125.30 support and tested the 124.50 zone.
  • There is a major bearish trend line forming with resistance near 125.15 on the hourly chart.

EUR/USD Technical Analysis

In the past few days, there was a steady decline in the Euro from well above the 1.1950 level against the US Dollar. The EUR/USD pair broke the 1.1910 pivot level to move into a negative zone.

The decline gained pace below the 1.1850 support level and the 50 hourly simple moving average. The pair even broke the 1.1800 support and traded as low as 1.1758 on FXOpen.

EUR/USD Technical Analysis  Euro Dollar

It is currently consolidating losses and trading near the 1.1780 level. An initial resistance is near the 23.6% Fib retracement level of the recent decline from the 1.1854 high to 1.1758 low. The first major resistance is near the 1.1800 level.

There is also a key bearish trend line forming with resistance near 1.1805 on the hourly chart of EUR/USD. The trend line is close to the 50% Fib retracement level of the recent decline from the 1.1854 high to 1.1758 low.

The 50 hourly simple moving average is also near the trend line resistance. If the pair breaks the trend line resistance, it could recover towards the 1.1850 resistance zone.

Conversely, the pair might resume its decline below the 1.1750 support. The next key support is near the 1.1720 level, below which the pair is likely to accelerate lower in the near term.

EUR/JPY Technical Analysis

The Euro broke a couple of important supports near the 125.50 and 125.30 levels against the Japanese Yen. The EUR/JPY pair even broke the 124.80 level and traded as low as 124.42.

It is currently correcting higher above 124.50, but it is well below the 50 hourly simple moving average. There was a break above the 23.6% Fib retracement level of the recent decline from the 125.63 high to 124.42 low.

EUR/JPY Technical Analysis Euro Yen

On the upside, the first major resistance is near the 125.00 level. It is close to the 50% Fib retracement level of the recent decline from the 125.63 high to 124.42 low.

There is also a major bearish trend line forming with resistance near 125.15 on the hourly chart. Therefore, it seems like the pair might struggle to clear the 125.00 and 125.15 levels in the near term. If there is a clear break above the trend line, the pair could revisit the breakdown zone at 125.30.

A close above 125.30 is needed to increase chances of a steady rise. Conversely, the pair might resume its decline below the 124.60 and 124.50 support levels.

The first major support is near the 124.20 level, below which the pair might even struggle to stay above the 124.00 support. Any further losses could lead the EUR/JY pair towards the 123.50 support.

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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.

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