News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
EUR/USD, EUR/JPY Weekly Forecast: Bearish Price Action Continues

EUR/USD, EUR/JPY Weekly Forecast: Bearish Price Action Continues

Mahmoud Alkudsi, Analyst

EUR/USD and EUR/JPY Outlook

See Our latest trading guides for free and discover what is likely to move the markets through Q3 of this year.

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.

Having trouble with your trading strategy? Need a hand? Here’s the #1 Mistake That Traders Make

EUR/USD Daily PRice CHART (May 1, 2018 - SEp 2, 2019) Zoomed Out

EURUSD daily price chart 02-09-19.PNG zoomed out

EUR/USD Daily Price CHART (June 1 – Sep 2, 2019) Zoomed in

EURUSD daily price chart 02-09-19.PNG 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.

Just getting started? See our Beginners’ Guide for FX traders

EUR/JPY Daily PRice CHART (Jan 2, 2017– Sep 2, 2019) Zoomed Out

EURJPY price daily chart 02-09-19 Zoomed out

EUR/JPY Daily PRice CHART (April 15 – SEp 2, 2019) Zoomed In

EURJPY price daily chart 02-09-19 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.

DISCLOSURES