EUR/USD and EUR/JPY: Euro Remains At Risk of More Downsides

EUR/USD and EUR/JPY: Euro Remains At Risk of More Downsides

Last Updated on July 7, 2021

EUR/USD started a fresh decline and it settled below 1.1900. EUR/JPY is showing bearish signs and upsides are likely to remain limited above 131.00.

Important Takeaways for EUR/USD and EUR/JPY

  • The Euro declined below the 1.1920 and 1.1900 support levels, and tested 1.1800.
  • There was a break below a short-term ascending channel with support near 1.1865 on the hourly chart.
  • EUR/JPY started a major decline after it failed to stay above the 131.50 support.
  • There is a key bearish trend line forming with resistance near 131.80 on the hourly chart.

EUR/USD Technical Analysis

The Euro started a fresh decline from the 1.2000 resistance zone against the US Dollar. The EUR/USD pair broke the 1.1920 and 1.1900 support levels to move into a bearish zone.

The pair even settled well below 1.1900 and the 50 hourly simple moving average. Recently, there was a break below a short-term ascending channel with support near 1.1865 on the hourly chart.

EUR/USD Technical Analysis Euro Dollar

A low was formed near 1.1807 on FXOpen and the pair is now consolidating losses. An immediate resistance is near the 1.1828 level. It is near the 23.6% Fib retracement level of the recent decline from the 1.1894 high to 1.1807 low.

The first major resistance is near the 1.1850 level. It is near the 50% Fib retracement level of the recent decline from the 1.1894 high to 1.1807 low.

Any more gains could set the pace for a move towards the 1.1900 level. The next major resistance is near the 1.1950 level. On the downside, an immediate support is near the 1.1800 level.

If there is a downside break, EUR/USD might continue to move down towards the 1.1760 support. Any more losses could open the doors for a test of the 1.1700 region. An intermediate support could be near the 1.1720 level.

EUR/JPY Technical Analysis

The Euro formed a top near the 132.50 zone and it started a major decline against the Japanese Yen. The EUR/JPY pair broke the 131.50 and 131.30 support levels to move into a bearish zone.

The pair settled below the 131.00 level and the 50 hourly simple moving average. A low is formed near 130.49 and the pair is now consolidating losses. An immediate resistance is near the 130.80 level. It is near the 23.6% Fib retracement level of the recent drop from the 131.86 high to 130.49 low.

EUR/JPY Technical Analysis Euro Yen

The first major resistance is near the 131.20 level. It is near the 50% Fib retracement level of the recent drop from the 131.86 high to 130.49 low.

The main resistance is forming near the 131.30 zone and the 50 hourly SMA. Therefore, a close above the 131.30 zone could set the pace for a larger increase in the near term. In the stated case, the pair could rise towards the 132.50 level,

On the downside, an initial support is near the 130.50 level. The next major support is near the 130.20 level. Any more losses could lead the pair towards the 130.00 support. A break below 130.00 might call for a move towards the 128.80 support level in the coming days, where the bulls are likely to take a stand.

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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Aayush Jindal
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