EUR/USD is currently correcting higher, but it is facing resistance near the 1.1135 area. On the other hand, EUR/JPY is signaling a short term top and it could decline below 122.00.
Important Takeaways for EUR/USD and EUR/JPY
- The Euro is facing a couple of hurdles near the 1.1135 and 1.1140 levels.
- There is a major bearish trend line forming with resistance near 1.1136 on the hourly chart of EUR/USD.
- EUR/JPY climbed higher nicely towards 122.75 and it is currently correcting gains.
- There is a key bullish trend line in place with support near 122.27 on the hourly chart.
EUR/USD Technical Analysis
After topping near the 1.1200 area, the Euro started a fresh decline below the 1.1160 support area against the US Dollar. The EUR/USD pair broke the 1.1150 and 1.1135 support levels to move into a bearish zone.
A low was formed near 1.1085 on FXOpen and the pair recently corrected above the 50 hourly simple moving average. However, the upward move was capped by the 1.1140 zone.
The last swing high was formed near 1.1146 and the recent swing low was near 1.1104. The pair is currently correcting higher and trading above the 50% Fib retracement level of the latest decline from the 1.1146 high to 1.1104 low.
However, the pair is again facing hurdles near the 1.1135 and 1.1140 levels. Besides, there is a major bearish trend line forming with resistance near 1.1136 on the hourly chart of EUR/USD.
The 76.4% Fib retracement level of the latest decline from the 1.1146 high to 1.1104 low is also near 1.1136. Therefore, a clear break above the 1.1135 resistance and the 1.1140 pivot level is must for a fresh increase.
Conversely, the pair might decline again below the 1.1120 and 1.1110 levels. The main support is now near the 1.1085 and 1.1090 levels, below which EUR/USD is likely to accelerate lower towards the 1.1050 level in the near term.
EUR/JPY Technical Analysis
The Euro started a strong rise from the 120.00 support area against the Japanese Yen. The EUR/JPY pair climbed above the 121.00 and 121.50 resistance levels.
Moreover, there was a close above the 121.80 level and the 50 hourly simple moving average. The pair even surged above the 122.00 level and a new weekly high is formed near the 122.75 level.
The pair is currently correcting lower below 122.50. It is now trading near the 122.30 support and the 50 hourly simple moving average. Moreover, there is a key bullish trend line in place with support near 122.27 on the hourly chart.
The 23.6% Fib retracement level of the upward move from the 120.16 low to 122.75 high is also near the 122.14 level. Therefore, a bearish break below the 122.20 and 122.14 levels might start a substantial downside correction.
The next major support is near the 121.80, below which the EUR/JPY pair could test the 121.50 level or the 50% Fib retracement level of the upward move from the 120.16 low to 122.75 high.
On the other hand, EUR/JPY could find support near 122.20 and 122.14. On the upside, an initial hurdle is near the 122.55 level, above which the bulls are likely to aim more gains above 122.75 and 123.00.
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