EUR/USD remained in a bearish zone below 1.0000. EUR/JPY is rising and there was a clear move above the 142.00 resistance zone.
Important Takeaways for EUR/USD and EUR/JPY
· The Euro started a major decline below the 1.0000 and 0.9980 support levels.
· There is a key bearish trend line forming with resistance near 0.9940 on the hourly chart.
· EUR/JPY started a fresh increase and jumped above the 142.00 resistance.
· There is a major bullish trend line forming with support near 141.60 on the hourly chart.
EUR/USD Technical Analysis
The Euro failed to start a steady recovery wave above the 1.0000 resistance against the US Dollar. The EUR/USD pair remained in a bearish zone and traded below the 0.9950 support.
There was a clear move below the 0.9940 level and the 50 hourly simple moving average. The pair even settled below the 0.9940 level. A low was formed near 0.9864 on FXOpen and the pair is now consolidating losses.
The pair recovered above 0.9900 and the 38.2% Fib retracement level of the downward move from the 0.9986 swing high to 0.9864 low.
However, the bears were active near the 0.9925 level and the 50 hourly simple moving average. They protected gains above the 50% Fib retracement level of the downward move from the 0.9986 swing high to 0.9864 low.
There is also a key bearish trend line forming with resistance near 0.9940 on the hourly chart. On the upside, the pair is facing resistance near the 0.9925 level and the 50 hourly simple moving average.
The next major resistance is near the 0.9940 level. A clear move above the 0.9940 resistance might send the price towards 0.9980. If the bulls remain in action, the pair could revisit the 1.0050 resistance zone in the near term.
On the downside, the pair might find support near the 0.9865 level. The next major support sits near the 0.9820 level. If there is a downside break below the 0.9820 support, the pair might accelerate lower in the coming sessions.
EUR/JPY Technical Analysis
The Euro also started a fresh increase from the 138.65 zone against the Japanese Yen. The EUR/JPY pair gained pace and traded above the key 140.00 resistance zone.
There was a clear move above the 141.20 resistance and the 50 hourly simple moving average. The pair even broke the 142.00 resistance and traded as high as 142.23. The current price action is positive and there might be more gains above the 142.25 level.
An immediate resistance on the upside is near the 142.50 level. The next major resistance could be near the 143.20 level. If there is an upside break above the 143.20 resistance, the pair could test the 145.00 resistance. Any more gains might send the pair towards the 146.50 level.
If there is a downside correction, the pair might find bids near the 141.85 level. The next major support is near the 141.65 level. There is also a major bullish trend line forming with support near 141.60 on the hourly chart.
The trend line is near the 23.6% Fib retracement level of the upward move from the 138.68 swing low to 142.23 high. The main support sits near the 140.50 level.
The 50% Fib retracement level of the upward move from the 138.68 swing low to 142.23 high is also near 140.50. Any more losses could lead the pair towards the 138.50 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.
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