EUR/USD Correct Gains While EUR/JPY Faces Key Hurdle

EUR/USD is gaining pace above the 1.0000 resistance. EUR/JPY is also rising and might climb further higher above the 147.00 zone.

Important Takeaways for EUR/USD and EUR/JPY

· The Euro started a downside correction from the 1.0500 resistance zone.

· There is a key declining channel forming with support near 1.0310 on the hourly chart.

· EUR/JPY started a strong decline and settled below the 144.50 support zone.

· There is a major bearish trend line forming with resistance near 144.15 on the hourly chart.

EUR/USD Technical Analysis

The Euro formed a base above the 1.0200 zone and started recovery wave against the US Dollar. The EUR/USD pair was able to clear the 1.0320 and 1.0400 resistance levels.

There was a clear move above the 1.0420 level and the 50 hourly simple moving average. The pair even climbed above 1.0450 and traded as high as 1.0496 on FXOpen. It is now correcting gains below the 1.0450 level.

There was a drop below the 1.0350 level and the pair traded as low as 1.0319. On the downside, the pair might find support near the 1.0320 level. Besides, there is a key declining channel forming with support near 1.0310 on the hourly chart.

The next major support sits near the 1.0265 level, below which the pair could even test the 1.0220 support zone. If there is a downside break below the 1.0220 support, the pair might accelerate lower in the coming sessions.  In the stated case, it could even test 1.0150.

On the upside, an immediate resistance is near the 1.0375 level. The next major resistance is near the 1.0400 level or the 50% Fib retracement level of the downward move from the 1.0496 swing high to 1.0319 low. The main resistance is near the 1.0450 level.

A clear move above the 1.0450 resistance might send the price towards 1.0500. If the bulls remain in action, the pair could visit the 1.0550 resistance zone in the near term.

EUR/JPY Technical Analysis

The Euro started a major decline from well above the 145.00 level against the Japanese Yen. The EUR/JPY pair gained pace and traded below the 144.50 support.

There was a clear move below the 144.00 support and the 50 hourly simple moving average. The pair even broke the 143.80 level and traded as low as 143.01. It is now consolidating losses near the 143.50 level.

There was a move above the 23.6% Fib retracement level of the downward move from the 145.00 swing high to 143.01 low. An immediate resistance on the upside is near the 143.75 level.

There is also a major bearish trend line forming with resistance near 144.15 on the hourly chart. The trend line is near the 50% Fib retracement level of the downward move from the 145.00 swing high to 143.01 low.

The next major resistance could be near the 144.50 level. If there is an upside break above the 144.50 resistance, the pair could test the 145.20 resistance. Any more gains might send the pair towards the 145.80 level.

On the downside, the pair might find support near the 143.30 level. The next major support is near 143.00. Any more losses could lead the pair towards the 142.00 support level in the near term.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.