EUR/USD and EUR/JPY: Euro Eyes Recovery

EUR/USD extended its decline and tested the 1.1700 support zone. EUR/JPY is currently attempting an upside correction above the 128.40 resistance.

Important Takeaways for EUR/USD and EUR/JPY

  • The Euro extended its decline below the 1.1750 and 1.1720 support levels.
  • There was a break below a key contracting triangle with support near 1.1765 on the hourly chart.
  • EUR/JPY also gained bearish momentum below the 129.00 support zone.
  • There is a major bearish trend line forming with resistance near 128.40 on the hourly chart.

EUR/USD Technical Analysis

The Euro started a major decline after it struggled to clear the 1.1800 resistance against the US Dollar. The EUR/USD pair broke the 1.1750 support zone to move into a bearish zone.

There was also a break below a key contracting triangle with support near 1.1765 on the hourly chart. The pair traded below the 1.1720 support and settled below the 50 hourly simple moving average.

A low is formed near 1.1702 on FXOpen and the pair is now correcting losses. There was a break above the 1.1715 level. An immediate resistance is near the 1.1725 level. It is near the 23.6% Fib retracement level of the recent decline from the 1.1804 high to 1.1702 low.

The main resistance is still forming near the 1.1740 and 1.1750 levels. It is near the 50% Fib retracement level of the recent decline from the 1.1804 high to 1.1702 low.

A clear break above the 1.1750 resistance could push EUR/USD towards 1.1800. On the downside, the 1.1700 level is a major support. Any more losses might lead EUR/USD towards the 1.1650 support zone. The next major support sits near the 1.1620 level.

EUR/JPY Technical Analysis

The Euro started a fresh decline from well above 129.50 against the Japanese Yen. The EUR/JPY pair traded below the 129.00 support zone to move into a bearish zone.

There was a break below the 128.50 support zone and the 50 hourly simple moving average. The pair tested the 128.20 zone and a low is formed near 128.21. It is now attempting a recovery wave above the 128.40 resistance.

EUR/JPY Technical Analysis Euro Yen

There is also a major bearish trend line forming with resistance near 128.40 on the hourly chart. If there is an upside break above the trend line resistance, the pair could start a decent recovery above 128.45.

The next major resistance could be near the 128.55 level and the 50 hourly simple moving average. It is close to the 23.6% Fib retracement level of the recent drop from the 129.69 high to 128.21 low.

Any more gains could lead the pair towards the 129.00 level or the 50% Fib retracement level of the recent drop from the 129.69 high to 128.21 low. An intermediate resistance is near the 128.70 level and the 50 hourly simple moving average.

The next major resistance sits near the 129.50 level. On the downside, an initial support is near the 128.30 level. The first major support is near the 128.20 level. The next major support is near the 128.00 level. Any more losses could lead the pair towards the 127.25 support. Any more losses might call for a move towards the 126.40 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.