- EUR/USD’s Reversal Signs: After breaching a descending trend and peaking at 1.0695, a Bearish Engulfing Candlestick pattern suggests a potential trend reversal.
- Technical Indicators for EUR/USD: Interactions among the 21-, 34-, 55-, and 100-day SMAs hint at a rising bearish momentum.
- EUR/JPY’s Return to Familiarity: This currency pair has reverted to its usual range after a significant high, the highest since 2008.
- Bullish Potential for EUR/JPY: While EUR/USD leans bearish, EUR/JPY points to a possible bullish TMA if prices ascend, especially if they remain above the crucial 21, 34, and 55-day SMAs.
- Support and Resistance Levels: For EUR/USD, notable supports are around 1.0480 – 1.0495 and resistances near 1.0700. For EUR/JPY, key supports are at 156.50, and resistances may emerge around 159.50.
EUR/USD: A Dazzling Dive and Rise
The EUR/USD currency pair made a noteworthy move last week. After soaring past a descending trend’s upper boundary, it notched a peak at 1.0695, just after brushing past resistance markers around 1.0680.
However, the enthusiasm was short-lived. A formidable Bearish Engulfing Candlestick pattern showed its face, hinting at a potential U-turn. This candlestick starts at or even higher than the preceding one’s finale, then stretches out to wrap around the prior candle, closing beneath its starting point. This may be the herald of the trend’s downward spiral once more.
Adding intrigue to the plot, the currency pair hopped over the 21-day Bollinger Band’s upper limit, only to retreat into it when the aforementioned bearish pattern was spotted. This behavior may validate the reversal vibes in the air.
Delving deeper into technical jargon, a pessimistic triple moving average (TMA) blueprint emerges when specific conditions among short, medium, and long-term SMAs are met. With the interplay of the 21-, 34-, 55-, and 100-day SMAs, it’s evident that the bearish momentum is in motion.
Looking ahead, support might be looming around 1.0480 – 1.0495, before dipping to December 2022 and October 2023’s lows near 1.0445. As for resistance, watch out for barriers approaching 1.0700 and further resistances at 1.0740, 1.0770, 1.0835, and 1.0945, culminating in a dense resistance cluster between 1.1075 and 1.1100.
EUR/JPY: Riding Steady Waves
The EUR/JPY took a reminiscent turn, reverting to its familiar territory after a daring ascent last week, which saw it reaching a pinnacle not seen since 2008.
While EUR/USD exudes bearish vibes with its TMA pattern, EUR/JPY paints a different story. A hopeful bullish TMA might be on the horizon if prices push north. The trio of 21, 34, and 55-day SMAs play a pivotal role here. Should prices maintain above these averages, we could be witnessing the birth of a bullish TMA narrative.
For those playing the support and resistance game, on the decline, keep an eye on 156.50, followed by markers at 154.39, 153.45, 151.60, 151.40, and 151.07. Ascending, resistance may form around 159.50, 159.75, and 159.90.
