The Euro demonstrated resilience against major currencies during Asian trading on Monday, with both EUR/JPY and EUR/USD pairs showing constructive technical setups and holding above key support levels. EUR/JPY traded around 186.70 after modest gains the previous day, consolidating above both the nine-day and 50-day Exponential Moving Averages (EMAs), which signals a bullish near-term bias. The 14-day Relative Strength Index (RSI) for EUR/JPY was around 60, indicating positive momentum without being overbought. The pair remains just below its all-time high of 187.95, recorded on April 17, with potential to advance toward the upper boundary of the ascending channel near 189.70 if bullish momentum continues. Immediate support is seen at the nine-day EMA of 186.75 and the lower channel boundary at 186.60, with a break below these levels potentially targeting the 50-day EMA at 184.94 [1].
The Euro was the strongest against the US Dollar among major currencies, with a 0.06% gain, while EUR/JPY also showed a 0.03% increase. The heat map provided further details on percentage changes among major currency pairs, highlighting the Euro's relative strength in the session [1].
For EUR/USD, the pair rebounded to trade near 1.1730, recovering early losses as the US Dollar Index (DXY) fell 0.06% to around 98.45. The DXY had opened higher at 99.35, influenced by geopolitical developments, including the US canceling a visit to Islamabad for peace talks with Iran and Iran's proposal to reopen the Strait of Hormuz and end regional conflict, as reported by Bloomberg. These events contributed to volatility in the currency markets [2].
Technical analysis for EUR/USD shows the pair trading above the 20-day EMA at 1.1696, maintaining a constructive bias. The RSI at 54.9 suggests firm but not overstretched bullish momentum. Immediate resistance is at the 50.0% Fibonacci retracement at 1.1749, with further targets at 1.1828 and 1.1941 if the rally continues. On the downside, support is seen at the 20-day EMA and the 38.2% Fibonacci level at 1.1670, with deeper support at 1.1572 and 1.1413. Investors are preparing for heightened volatility this week as both the Federal Reserve and the European Central Bank are set to announce monetary policy decisions on Wednesday and Thursday, respectively [2].
CONCLUSION
Both EUR/JPY and EUR/USD are holding above key technical support levels, reflecting the Euro's relative strength in the current market environment. With major central bank policy announcements scheduled this week, investors anticipate increased volatility, but the technical outlook for the Euro remains constructive in the near term.