EUR/USD started a fresh decline below the 1.1420 support. EUR/JPY is declining and could accelerate lower below 129.70.
Important Takeaways for EUR/USD and EUR/JPY
· The Euro started a fresh decline after it faced sellers near the 1.1480 level.
· There was a break below a key bullish trend line with support near 1.1405 on the hourly chart.
· EUR/JPY gained bearish momentum below the 130.50 and 130.20 support levels.
· There is a major bearish trend line forming with resistance near 130.90 on the hourly chart.
EUR/USD Technical Analysis
The Euro gained pace above the 1.1400 and 1.1450 resistance levels against the US Dollar. However, the EUR/USD pair struggled to gain pace above 1.1480 and started a fresh decline.
The pair traded below the 1.1420 support and settled below the 50 hourly simple moving average. There was a clear break below the 50% Fib retracement level of the upward move from the 1.1284 swing low to 1.1482 high (formed on FXOpen).
Besides, there was a break below a key bullish trend line with support near 1.1405 on the hourly chart. The pair is now trading below the 1.1350 level and the 50 hourly simple moving average.
It is now trading near the 76.4% Fib retracement level of the upward move from the 1.1284 swing low to 1.1482 high. Any more losses might send the pair towards the 1.1280 support zone. On the upside, the pair is facing resistance near the 1.1350 level.
The next major resistance is near the 1.1380 level. The main resistance is forming near the 1.1400 level. A clear break above the 1.1400 resistance could push EUR/USD towards 1.1450. If the bulls remain in action, the pair could rise above the 1.1480 resistance zone in the near term.
EUR/JPY Technical Analysis
The Euro started a major decline after it failed to surpass the 131.20 zone against the Japanese Yen. The EUR/JPY pair declined below the 130.80 support zone to enter a bearish zone.
The pair settled below the 130.00 zone and settled above the 50 hourly simple moving average. The pair traded as low as 129.70 and is currently consolidating losses.
The first major support is near the 129.50 level. Any more losses could lead the pair towards the 128.80 support level in the near term. The next major support is near the 128.50 level, where the bulls might take a stand. On the upside, an immediate resistance is near the 130.00 level.
It is near the 23.6% Fib retracement level of the recent decline from the 131.17 swing high to 129.70 low. If there is an upside break above the 130.00 resistance, the pair could start a fresh increase above 130.25.
The next major resistance could be near the 130.45 level or the 50% Fib retracement level of the recent decline from the 131.17 swing high to 129.70 low, above which the pair could gain bullish momentum.
In the stated case, the pair could rise towards the 131.00 level. Any more gains could lead the pair towards the 131.50 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.