EUR/USD Turns Red, USD/JPY Is Correcting Gains

FXOpen

EUR/USD started a fresh decline and traded below the key 1.1880 support zone. USD/JPY is correcting gains and it is now trading below the 108.80 support.

Important Takeaways for EUR/USD and USD/JPY

  • The Euro failed to continue higher above 1.1950 and started a fresh decline.
  • There is a key bearish trend line forming with resistance near 1.1915 on the hourly chart of EUR/USD.
  • USD/JPY started a downside correction from well above the 109.00 level.
  • There is a major bearish trend line forming with resistance near 108.65 on the hourly chart.

EUR/USD Technical Analysis

In the past few days, the Euro struggled to gain bullish momentum above 1.1950 against the US Dollar. The EUR/USD pair formed a swing high near 1.1946 on FXOpen and recently started a fresh decline.

There was a break below a few important supports near the 1.1890 and 1.1880 levels. The pair even settled below the 1.1880 support zone and the 50 hourly simple moving average. A low is formed near 1.1836 and the pair is currently consolidating losses.

EUR/USD Technical Analysis Euro Dollar

An initial resistance is near the 1.1860 level. It is close to the 23.6% Fib retracement level of the recent decline from the 1.1946 swing high to 1.1836 low.

The first major resistance is now forming near the 1.1890 and 1.1880 levels. The 50% Fib retracement level of the recent decline from the 1.1946 swing high to 1.1836 low is also near 1.1891. Moreover, there is a key bearish trend line forming with resistance near 1.1915 on the hourly chart of EUR/USD.

Therefore, the pair must clear 1.1880 and 1.1920 to start a strong increase in the coming sessions. Conversely, the pair could continue to move down below the 1.1836 low. The first major support is near the 1.1820 level.

If there is a downside break below the 1.1820 support, the pair could dive towards the 1.1750 support in the near term. Any more losses might call for a test of the 1.1715 support level.

USD/JPY Technical Analysis

The US Dollar formed a short-term top near the 109.35 level against the Japanese Yen. As a result, the USD/JPY pair started a slow decline and broke the 109.00 support zone.

There was also a break below the 108.80 support level. The pair even broke the 108.50 support level and settled below the 50 hourly simple moving average. A low was formed near 108.40 before the pair corrected higher.

USD/JPY Technical Analysis Dollar Yen

It broke the 108.65 level, but it failed to clear 108.80. A high is formed near 108.75 and the pair is currently declining. It broke the 50% Fib retracement level of the upward move from the 108.40 low to 108.75 high.

There is also a major bearish trend line forming with resistance near 108.65 on the hourly chart. The pair is now trading near the 76.4% Fib retracement level of the upward move from the 108.40 low to 108.75 high.

It seems like it might continue to move down below the 108.50 and 108.40 support levels. The next major support is near the 108.00 level. Any more losses might call for a move towards 107.40.

Conversely, the pair might start a fresh increase above the trend line resistance and 108.70. The main resistance is near 108.80, above which the USD/JPY pair could accelerate higher towards the 109.30 zone in the near term.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

BTC/USD Analysis: Price Approaching Key Resistance
Cryptocurrencies

BTC/USD Analysis: Price Approaching Key Resistance

Analysing the long-term BTC/USD chart on 16th May, we created a "roadmap" for Bitcoin's price, which looked like an expanding fan and consisted of a median line with support levels below it and resistance levels above it.

Today, when

MSFT Share Price Dropped After Global Outage
Shares

How Did MSFT Stock Price React To Global Outage?

On 19th July, a global outage occurred. Numerous computers running Windows worldwide experienced "blue screens of death" (BSOD), affecting companies in different sectors, including airlines, hospitals, media, banks, and others.

The outage was caused by a CrowdStrike's Falcon Sensor update,

Market Analysis: GBP/USD Trims Gains While USD/CAD Rallies
Forex Analysis

Market Analysis: GBP/USD Trims Gains While USD/CAD Rallies

GBP/USD started a pullback from the 1.3050 zone. USD/CAD is rising and might aim for more gains above the 1.3735 resistance.

Important Takeaways for GBP/USD and USD/CAD Analysis Today

  • The British Pound started a
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.