EUR/USD is facing resistance near the 1.0880 zone. EUR/JPY is also facing hurdles and remains at a risk of a downward move below 141.00.
Important Takeaways for EUR/USD and EUR/JPY
· The Euro started a fresh increase from the 1.0800 zone.
· There is a key bearish trend line forming with resistance near 1.0895 on the hourly chart.
· EUR/JPY started a steady increase after it found support near the 140.75.
· There is a connecting bearish trend line forming with resistance near 141.65 on the hourly chart.
EUR/USD Technical Analysis
The Euro formed a base above the 1.0800 zone and started a decent increase against the US Dollar. The EUR/USD pair was able to clear the 1.0820 and 1.0840 resistance levels.
There was a clear move above the 1.0850 level and the 50 hourly simple moving average. The pair even climbed above the 50% Fib retracement level of the downward move from the 1.0913 swing high to 1.0802 low (formed on FXOpen).
However, the pair struggled to stay above the 1.0865 level and the 50 hourly simple moving average. It failed to clear the 61.8% Fib retracement level of the downward move from the 1.0913 swing high to 1.0802 low.
On the downside, the pair might find support near the 1.0840 level. The next major support sits near the 1.0825 level, below which the pair could even test the 1.0800 support zone.
If there is a downside break below the 1.0800 support, the pair might accelerate lower in the coming sessions. In the stated case, it could even test 1.0725. On the upside, an immediate resistance is near the 1.0870 level. There is also a key bearish trend line forming with resistance near 1.0895 on the hourly chart.
The next major resistance is near the 1.0920 level. A clear move above the 1.0920 resistance might send the price towards 1.0950. If the bulls remain in action, the pair could visit the 1.1050 resistance zone in the near term.
EUR/JPY Technical Analysis
The Euro also followed a similar path from the 140.75 support zone against the Japanese Yen. The EUR/JPY pair gained pace and traded above the 141.00 resistance zone.
The pair climbed above the 50% Fib retracement level of the downward move from the 141.97 swing high to 140.74 low. It also spiked above the 141.45 resistance zone and the 50 hourly simple moving average.
However, it struggled to stay above the 141.40 level and the 50 hourly simple moving average. The bears defended the 61.8% Fib retracement level of the downward move from the 141.97 swing high to 140.74 low.
On the downside, the pair might find support near the 141.00 level. The next major support is near 140.50. Any more losses could lead the pair towards the 140.00 support level in the near term.
An immediate resistance on the upside is near the 141.40 level. The next major resistance could be near the 141.65 level. There is also a connecting bearish trend line forming with resistance near 141.65 on the hourly chart.
If there is an upside break above the 141.65 resistance, the pair could test the 142.50 resistance. Any more gains might send the pair towards the 143.20 level.
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.
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