EUR/USD started a decent recovery wave above the 1.1345 resistance zone. EUR/JPY is also rising and it is trading nicely above the 122.00 level.
Important Takeaways for EUR/USD and EUR/JPY
- The Euro gained bullish momentum and traded above the 1.1345 and 1.1375 resistance levels.
- There is a key rising channel forming with support near 1.1375 on the hourly chart of EUR/USD.
- EUR/JPY climbed higher nicely above the 121.50 and 122.00 resistance levels.
- There is a connecting bullish trend line forming with support near 122.10 on the hourly chart.
EUR/USD Technical Analysis
After forming a strong support near 1.1275, the Euro started a steady rise against the US Dollar. The EUR/USD pair broke the main 1.1320 and 1.1345 resistance levels to move into a positive zone.
The pair even climbed above the 1.1375 resistance and settled above the 50 hourly simple moving average. Finally, the pair spiked above 1.1400 and traded as high as 1.1423 on FXOpen.
It is currently correcting lower and trading below the 1.1400 level. It declined below the 23.6% Fib retracement level of the recent upward move from the 1.1325 low to 1.1423 high. On the downside, there is a major support forming near the 1.1375 level (the recent breakout zone).
There is also a key rising channel forming with support near 1.1375 on the hourly chart of EUR/USD. The channel support is close to the 50% Fib retracement level of the recent upward move from the 1.1325 low to 1.1423 high.
Below the trend line, the next support is near the 50 hourly simple moving average at 1.1365. The next major support is near the 1.1345 level, below which the pair might move into a bearish zone.
On the upside, the 1.1420 level is a short-term resistance. A clear break above the 1.1420 zone could push the pair further higher towards the 1.1450 level in the coming sessions. The next key resistance could be 1.1480.
EUR/JPY Technical Analysis
The Euro also started a strong increase from the 120.50 support area against the Japanese Yen. The EUR/JPY pair climbed higher nicely above the 121.50 and 122.00 resistance levels.
There was also a close above the 122.00 level and the 50 hourly simple moving average. The pair traded as high as 122.49 and it is currently correcting lower. It is approaching the 23.6% Fib retracement level of the recent wave from the 121.46 low to 122.49 high.
On the downside, there are many supports near 122.10 and 122.00. There is also a connecting bullish trend line forming with support near 122.10 on the hourly chart.
The main support is near the 122.00 level (a breakout zone). It is also close to the 50% Fib retracement level of the recent wave from the 121.46 low to 122.49 high. If there is a downside break below the 122.00 support, the pair could correct lower towards 121.60 or 121.40.
On the upside, the 122.50 level is a major hurdle for the bulls. If EUR/USD climbs above the 1.1420 level, EUR/JPY might also make an attempt to clear the key 122.50 resistance.
In the mentioned case, the pair might continue to rise towards the 123.20 and 123.50 levels in the coming sessions.
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