HomeForex MarketEuro Technical Outlook - EUR/USD and EUR/JPY Have Misplaced Floor however Have...

Euro Technical Outlook – EUR/USD and EUR/JPY Have Misplaced Floor however Have Development Strains Intact. Will They Maintain?

Euro, EUR/USD, US Greenback, EUR/JPY, Japanese Yen – Speaking factors

  • EUR/USD has damaged down and is eyeing off a 5-year low
  • Yen depreciation has seen EUR/JPY boosted nevertheless it now faces hurdles
  • Broader weak point within the Euro would possibly present alternatives


After failing to interrupt beneath the January 2017 low of 1.0340, EUR/USD has staged a rally that has damaged again above one descending pattern line however failed to beat a second one.

The latest peaks are simply above that descending pattern line and have arrange a possible resistance zone at 1.0757 – 1.0787. Beneath that cluster, the 10-, 21-, 34 and 55-day easy shifting common (SMA) might additionally provide resistance.

Resistance may be the historic break level of 1.0638, which was the March 2020 low.

The gradients of the 10-, 34- and 55-day SMAs are adverse which can sign that bearish momentum is evolving. The 21-day SMA has flattened out and extra days with the value beneath it is going to see it roll over to additional assist the bearish case.

Help could possibly be on the latest low of 1.0349 or the January 2017 low of 1.0340.

Chart Created in TradingView


EUR/JPY has made a 7-year excessive final week with Yen weak point remerging. After breaking beneath an ascending pattern line final month, it has established a brand new ascending pattern line.

Momentum on the rally emerged after the value broke out of the topside of a Pennant formation.

This has seen bullish momentum unfold. A bullish triple shifting common (TMA) formation requires the value to be above the quick time period easy shifting common (SMA), the latter to be above the medium time period SMA and the medium time period SMA to be above the long run SMA. All SMAs additionally must have a optimistic gradient.

Taking a look at any mixture of the 10-, 21-, 55- and 100-day SMAs and the factors for a bullish TMA have been met for EUR/JPY.

Resistance is likely to be supplied on the latest peak of 144.25. On the draw back, assist could lie on the break factors of 140.00, 139.00 and 138.32. Close by, Friday’s low of 140.80 might present assist.


Chart Created in TradingView

— Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the feedback part beneath or @DanMcCathyFX on Twitter



Please enter your comment!
Please enter your name here

5 − 2 =

Most Popular