EUR/USD Could Recover, EUR/JPY Extends Rally

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EUR/USD is facing a major resistance near the 1.1335 and 1.1350 resistance levels. EUR/JPY is rising and showing positive signs above the 129.50 level.

Important Takeaways for EUR/USD and EUR/JPY

· The Euro is struggling to gain pace for a move above the 1.1350 resistance zone.

· There is a key bullish trend line forming with support near 1.1300 on the hourly chart.

· EUR/JPY gained pace for a strong move above the 130.00 resistance level.

· There was a break below a major bullish trend line with support near 129.80 on the hourly chart.

EUR/USD Technical Analysis

The Euro made a few attempts to gain strength above the 1.1335 and 1.1350 resistance levels against the US Dollar. The EUR/USD pair struggled to gain pace and started a fresh decline from the 1.1335 zone.

The pair traded below the 1.1320 support and settled below the 50 hourly simple moving average. A low was formed near 1.1290 on FXOpen and the pair is now correcting losses. There was a break above the 1.1300 level.

EUR/USD Hourly Chart

The pair spiked above the 50% Fib retracement level of the downward move from the 1.1335 swing high to 1.1290 low.

It is now facing resistance near the 1.1310 level. The next major resistance is near the 1.1320 level. It is near the 76.4% Fib retracement level of the downward move from the 1.1335 swing high to 1.1290 low. The main resistance is forming near the 1.1335 and 1.1350 levels.

A clear break above the 1.1350 resistance could push EUR/USD towards 1.1400. On the downside, the 1.1300 level is a major support. There is also a key bullish trend line forming with support near 1.1300 on the hourly chart.

Any more losses might lead EUR/USD towards the 1.1220 support zone in the near term. The next major support sits near the 1.1200 level.

EUR/JPY Technical Analysis

The Euro started a major increase from the 128.00 zone against the Japanese Yen. The EUR/JPY pair climbed above the 128.80 and 129.20 resistance levels to move into a positive zone.

The pair even cleared the 130.00 zone and settled above the 50 hourly simple moving average. A high is formed near 130.20 and the pair is now correcting losses. There was a break below the 130.00 support zone.

EUR/JPY Hourly Chart

There was a break below a major bullish trend line with support near 129.80 on the hourly chart. The pair even declined below the 23.6% Fib retracement level of the upward move from the 129.05 swing low to 130.20 high.

It tested the 129.60 support zone. The 50% Fib retracement level of the upward move from the 129.05 swing low to 130.20 high is acting as a support.

The first major support is near the 129.50 level. Any more losses could lead the pair towards the 128.80 support level in the near term.

An immediate resistance is near the 130.00 level. If there is an upside break above the 130.00 resistance, the pair could start a fresh increase above 130.20. The next major resistance could be near the 130.50 level. Any more gains could lead the pair towards the 132.00 level.

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.

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