EUR / USD continues to struggle, USD / JPY is gaining ground


EUR / USD extended its decline and traded near 1.1520. USD / JPY is rising and may continue to climb above the 114.00 level.

Important points to remember for EUR / USD and USD / JPY

· The euro has started to fall significantly below the support levels of 1.1650 and 1.1600.

· A major downtrend line is forming with resistance near 1.1575 on the EUR / USD hourly chart.

· USD / JPY started to rise again and broke through the resistance area of ​​112.00.

· A key bullish trendline is forming with support near 112.65 on the hourly chart.

EUR / USD technical analysis

Last week, the euro began a further decline below 1.1650 support against the US dollar. EUR / USD traded below 1.1600 support to enter a bearish zone.

The pair even broke the 1.1580 level and settled below the 50 hour simple moving average. A low formed near 1.1524 on FXOpen and the pair is now consolidating its losses. Immediate resistance is near the 1.1560 level.

Hourly EUR / USD chart

A major bearish trendline is also forming with resistance near 1.1575 on the EUR / USD hourly chart. The next major resistance is near the 1.1615 level.

The 23.6% Fib retracement level of the key decline from 1.1899 high to 1.1524 low is also near the 1.1615 level. The first key resistance is near the 1.1670 level. Major resistance is near the 1.1720 level and the 50 hour simple moving average.

It is near the 50% Fib retracement level of the key drop from 1.1899 swing high to 1.1524 low. A clear break above the 1.1720 area could open the door for a larger increase.

If there is no breakout above 1.1615, the pair may continue to move lower. Immediate support is near 1.1540. The next major support is near 1.1500, below which the pair could drop to 1.1450 support in the near term.

USD / JPY technical analysis

The US dollar started a further rise in the 110.50 area against the Japanese yen. USD / JPY broke resistance levels 111.50 and 112.00 to enter a positive zone.

The upward movement accelerated above the 112.50 level and the pair stabilized above the 50-hour simple moving average. The pair traded up to 113.81 and is now consolidating its gains.

USD / JPY hourly chart

It is now trading near the 113.45 level. First support on the downside is near the 113.10 level. It is near the 23.6% Fib retracement level of the move up from 110.82 to 113.81 low.

The next major support is near the 112.80 level. A key uptrend line is also forming with support near 112.65 on the hourly chart. Further declines could lead the pair towards the support area of ​​112.35.

The 50% Fib retracement level of the move up from 110.82 low to 113.81 high is also close to 112.35 for support. If there is a break down below the 112.35 support, the pair could move lower towards 111.50.

On the upside, initial resistance is near the 113.80 level. The next major resistance is near the 114.00 level, above which the pair is expected to rise steadily over the next few sessions.

This forecast represents the opinion of FXOpen Markets Limited only, and should not be construed as an offer, invitation or recommendation regarding FXOpen Markets Limited products and services or as financial advice.



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