EUR/USD, EUR/JPY Weekly Forecast: Bearish Price Action Continues
EUR/USD and EUR/JPY Outlook
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EUR/JPY, EUR/USD Sellers in Charge
Last week EUR/JPY declined for the ninth week in a row and closed on Friday with a bearish Doji pattern reflecting the bearish outlook of the pair at this stage. Similarly, EUR/USD continued losing value and closed on Friday with 1.4% loss.
Alongside this, the Relative Strength Index (RSI) pointed lower on both pairs. Currently, the oscillator is about to drop to the oversold territory highlighting the strength of the downtrend momentum.
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EUR/USD Daily PRice CHART (May 1, 2018 - SEp 2, 2019) Zoomed Out
EUR/USD Daily Price CHART (June 1 – Sep 2, 2019) Zoomed in
Looking at the daily chart we notice, on Thursday EUR/USD sellers successfully forced the pair to move to a lower trading zone 1.0951 – 1.1060. Currently, the price eyes a test of the low end of the zone.
Thus, a close below the low end of the zone could send EURUSD towards 1.0912. Further close below this level may see the price trading even lower towards 1.0812. However, the weekly support levels underlined on the chart (zoomed in) should be followed closely.
On the flip-side, any failure in closing below the low end of the zone could reveres EURUSD direction towards the high end of the zone. Further close above the high end may encourage buyers to rally the price towards the vicinity of 1.1215-20. Although, the weekly resistance levels underscored on the chart need to be kept in focus.
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EUR/JPY Daily PRice CHART (Jan 2, 2017– Sep 2, 2019) Zoomed Out
EUR/JPY Daily PRice CHART (April 15 – SEp 2, 2019) Zoomed In
Looking at the daily chart we notice, on Friday EUR/JPY downtrend pressed the pair to the lower trading zone 114.80 – 117.30. The pair opened this week with a gap to the downside hinting more bearishness towards the low end of the zone. Although, sellers may need to pay attention at the weekly support levels underlined on the chart.
Further close below the low end, could send EURJPY towards the vicinity of 112.19-08. Nonetheless, the weekly support area and levels marked on the chart (zoomed in) should be watched along the way.
In turn, a close above the low end of the zone, may see EURJPY correcting higher towards the high end of the zone. Although, the weekly resistance levels underlined on the chart should be considered.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.