The Euro has exhibited a bullish trend against the US Dollar, gaining momentum above the 1.0985 resistance zone. On the hourly chart of EUR/USD at FXOpen, the pair initiated a fresh upward move above the 1.0930 level and continued to climb. It surpassed the key resistance level of 1.0985 and settled above the 1.1020 resistance and the 50-hour simple moving average.
Currently, EUR/USD is consolidating its gains after reaching a high of 1.1044. If there is a downside correction, the pair may test the 23.6% Fib retracement level at 1.1020, followed by the key bullish trend line forming with support near 1.1020 and the 50-hour simple moving average.
Furthermore, the 50% Fib retracement level of the upward move from the 1.0929 swing low to the 1.1044 high is seen as the next major support at 1.0985. A downside break below this level could potentially drive the pair towards the 1.0930 support. However, the main support on the EUR/USD chart lies near 1.0910, indicating a possibility of a significant decline if breached.
On the upside, resistance for EUR/USD is currently observed near 1.1040. In the event of a break above this level, the pair will face the next major resistance at 1.1065. If successfully surpassed, this could set the pace for another significant increase, potentially towards 1.1120.
USD/JPY Technical Analysis
On the hourly chart of USD/JPY at FXOpen, a strong decline is evident, with the pair trading below the 142.85 support level and the 50-hour simple moving average. After breaking the 142.20 pivot level, USD/JPY formed a low near 141.88 and is now attempting to recover.
There was a notable breakthrough of a major bearish trend line with resistance at 142.25 and the 50-hour simple moving average. Following this, the pair spiked above the 23.6% Fib retracement level of the downward move from the 144.93 swing high to the 141.88 low.
Immediate resistance for USD/JPY is observed near 142.85, while the first significant resistance lies at 143.40, which corresponds to the 50% Fib retracement level of the downward move from the 144.93 swing high to the 141.88 low. A close above this level, accompanied by the hourly RSI moving above 60, could drive the pair towards 144.50. If the bullish momentum continues, the next major resistance resides at 145.00, potentially leading to a challenge of 146.20 in the coming days.
In terms of support, the first significant level is near 141.85, followed by the 141.45 level. A close below 141.45 might result in a steady decline, with the pair potentially dropping towards the 140.00 support level.
To conclude, the Euro has been demonstrating strength against the US Dollar, maintaining a bullish momentum and breaching key resistance levels. In contrast, the US Dollar is showing bearish signs against the Japanese Yen, with the pair declining below crucial support levels. Traders should carefully monitor these technical developments to make informed decisions in their trading strategies.
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