EUR/USD Faces Hurdles, USD/JPY Could Recover

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EUR/USD started a fresh decline from well above 1.1380. USD/JPY remained in a bearish zone and settled below the 114.50 pivot level.

Important Takeaways for EUR/USD and USD/JPY

· The Euro started a fresh decline after there was no close above the 1.1420 level.

· There is a key bearish trend line forming with resistance near 1.1308 on the hourly chart of EUR/USD.

· USD/JPY started a fresh decline from well above the 114.50 pivot zone.

· There is a short-term rising channel forming with resistance near 114.20 on the hourly chart.

EUR/USD Technical Analysis

Recently, the Euro failed to clear the 1.1420 zone against the US Dollar. The EUR/USD pair started a fresh decline and traded below the 1.1350 support zone.

The pair even broke the 1.1320 level and settled below the 50 hourly simple moving average. A low was formed near 1.1263 on FXOpen and the pair is now correcting higher. There was a move above the 50% Fib retracement level of the recent decline from the 1.1334 swing high to 1.1263 low.

EUR/USD Hourly Chart

An immediate resistance on the upside is near the 1.1305 level. There is also a key bearish trend line forming with resistance near 1.1308 on the hourly chart of EUR/USD.

The trend line is near the 61.8% Fib retracement level of the recent decline from the 1.1334 swing high to 1.1263 low. The next major resistance is near the 1.1320 level. The main resistance is near the 1.1350 level and the 50 hourly simple moving average.

If there is no break above 1.1308, the pair might start a fresh decline. An immediate support is near the 1.1288. The next major support is near 1.1265, below which the pair could drop to 1.1220 in the near term.

USD/JPY Technical Analysis

The US Dollar also struggled to gain momentum above a key resistance near 115.00 against the Japanese Yen. The USD/JPY pair started a major decline below the 114.50 pivot level.

The pair traded below the 114.20 support zone the 50 hourly simple moving average. It traded as low as 113.47 and is currently consolidating losses. There was a move above the 23.6% Fib retracement level of the recent decline from the 115.05 swing high to 113.47 low.

USD/JPY Hourly Chart

On the upside, an initial resistance is near the 114.20 level. Besides, there is a short-term rising channel forming with resistance near 114.20 on the hourly chart.

The next major resistance is near the 114.25. It is near the 50% Fib retracement level of the recent decline from the 115.05 swing high to 113.47 low. Any more gains could send the pair towards the 115.00 level. The next key hurdle is near the 115.50 level.

If not, it could resume its decline below 113.80. The next major support is near the 113.50 level or the recent low. A clear move below the 113.50 level may perhaps spark a major decline.

The next major support is near the 113.00 level. Any more downsides might lead the pair towards the 112.50 support zone, below which the bears might aim a test of the 112.00 support zone 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.

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