EUR/USD is gaining bearish momentum below 1.0890 and 1.0855 support levels. Similarly, USD/JPY is trading in a bearish zone and it could struggle to recover above 106.50.
Important Takeaways for EUR/USD and USD/JPY
- The Euro started a major decline after it failed to stay above 1.1000.
- There was a break below a major bullish trend line with support near 1.0890 on the hourly chart of EUR/USD.
- USD/JPY is following a bearish path from well above the 107.20 and 107.40 levels.
- There is a major bearish trend line forming with resistance near 106.60 on the hourly chart.
EUR/USD Technical Analysis
This week, the Euro started a fresh decline from well above the 1.0900 support zone against the US Dollar. The EUR/USD pair broke the 1.0890 and 1.0880 support levels to enter a bearish zone.
Moreover, there was a close below the 1.0880 level and the 50 hourly simple moving average. During the decline, the pair broke the 76.4% Fib retracement level of the upward move from the 1.0832 low to 1.1018 high (formed on FXOpen).
Besides, there was a break below a major bullish trend line with support near 1.0890 on the hourly chart of EUR/USD. The pair is now trading near the 1.0832 low and it could continue to move down in the near term.
An initial support is near the 1.0810 level, below which the pair could even decline below 1.0800. The next support is near the 1.0790 or the 1.236 Fib extension level of the upward move from the 1.0832 low to 1.1018 high.
If there are more downsides, the pair could continue to slide towards the 1.0750 support zone. If there is an upside correction, the previous support near 1.0890 and the 50 hourly simple moving average could act as a strong resistance.
To move into a positive zone, EUR/USD must gain pace above the 1.0890 level and settle above the 1.0900 pivot level in the near term.
USD/JPY Technical Analysis
The US Dollar failed to continue higher above 107.50 resistance and started a fresh decline against the Japanese Yen. The USD/JPY pair broke the 107.20 and 107.00 support levels to move into a bearish zone.
The pair even settled below the 106.80 level and the 50 hourly simple moving average. The pair traded to a new weekly low at 106.20 and it is currently correcting higher.
An initial resistance on the upside is near the 106.40 level or the 23.6% Fib retracement level of the recent drop from the 106.89 high to 106.20 low. The first key resistance is seen near the 106.50 level.
There is also a major bearish trend line forming with resistance near 106.60 on the hourly chart. The trend line is close to the 50% Fib retracement level of the recent drop from the 106.89 high to 106.20 low, and the 50 hourly simple moving average.
Therefore, the pair must break the 106.60 resistance and the 50 hourly simple moving average to start a decent upward move. The next key resistance is near the 107.20 level, followed by the main 107.50 resistance zone.
Conversely, the USD/JPY pair might struggle to correct above 106.60. In the mentioned case, it is likely to extend its losses below the 106.20 and 106.00 levels.
Be the first to comment