EUR/USD Faces Uphill Task, USD/JPY Signals Correction
- EUR/USD is attempting a recovery wave above 1.0000.
- A major bullish trend line is forming with support at 0.9995 on the 4-hours chart.
- GBP/USD extended losses below the 1.1450 support zone.
- USD/JPY is signaling a downside correction from the 145.00 resistance.
EUR/USD Technical Analysis
The Euro faced a strong resistance near the 1.0197 against the US Dollar. EUR/USD started a fresh decline and traded below the 1.0060 support zone.
Looking at the 4-hours chart, the pair extended losses below the 1.0020 support, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
It traded as low as 0.9945 before the bulls took a stand. It is now consolidating losses above the 0.9980 level. On the upside, the pair is facing a strong resistance near the 1.0060 zone and the 200 simple moving average (green, 4-hours).
The 50% Fib retracement level of the key decline from the 1.0197 swing high to 0.9945 low is also near the 1.0070 level to act as a resistance.
A clear move above the 1.0060 and 1.0070 levels could open the doors for a larger increase. In the stated case, the pair might rise towards the 1.0120 and 1.0130 levels.
On the downside, an initial support is near the 0.9995 level. There is also a major bullish trend line forming with support at 0.9995 on the same chart. A downside break below the trend line support might spark a sharp decline towards the 0.9950 support.
The next major support is near the 0.9920 level, below which the pair could even test the 0.9900 level in the coming sessions.
Looking at USD/JPY, the pair made two attempts to clear the 145.00 resistance level, but failed. As a result, there is a risk of a downside correction to 140.00.
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