Market Analysis: EUR/USD Breakout Builds, USD/CHF Slides Lower Again

EUR/USD started a fresh surge above 1.1740 and 1.1780. USD/CHF declined further and is now struggling below 0.7850.

Important Takeaways for EUR/USD and USD/CHF Analysis Today

· The Euro started a major increase from 1.1665 against the US Dollar.

· There is a contracting triangle forming with support near 1.1775 on the hourly chart of EUR/USD at FXOpen.

· USD/CHF declined below the 0.7840 and 0.7825 support levels.

· There is a key bearish trend line forming with resistance near 0.7840 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair started a fresh increase from the 1.1665 zone. The Euro cleared the 1.1700 barrier to move into a bullish zone against the US Dollar.

The bulls pushed the pair above the 50-hour simple moving average and 1.1750. Finally, the pair cleared 1.1765 and 1.1780. A high was formed near 1.1811 and the pair is now consolidating gains. There was a minor pullback toward the 23.6% Fib retracement level of the upward wave from the 1.1664 swing low to the 1.1811 high.

An Immediate bid zone on the downside is near a contracting triangle at 1.1775. The next area of interest could be near 1.1755 and the 50-hour simple moving average.

A downside break below 1.1755 might send the pair toward 1.1740. Any more losses might send the pair into a bearish zone toward 1.1700.

If there is a fresh increase, an immediate hurdle on the EUR/USD chart is 1.1800. The first major pivot level for the bulls could be 1.1810. An upside break above 1.1810 might send the pair to 1.1850. The next selling zone could be 1.1880. Any more gains might open the doors for a move toward 1.2000.

USD/CHF Technical Analysis

On the hourly chart of USD/CHF at FXOpen, the pair started a fresh decline from well above 0.7880. The US Dollar dropped below 0.7850 to move into a negative zone against the Swiss Franc.

The bears pushed the pair below the 50-hour simple moving average and 0.7825. Finally, the bulls appeared near 0.7790. A low was formed near 0.7789, and the pair is now consolidating losses. There was a minor recovery toward the 23.6% Fib retracement level of the downward move from the 0.7934 swing high to the 0.7789 low.

On the upside, the pair could face bears near 0.7825. The first major resistance sits near the 50-hour simple moving average at 0.7840 and a key bearish trend line.

The main barrier for an upside break could be near the 50% Fib retracement at 0.7860. A daily close above 0.7860 could start a fresh increase. In the stated case, the pair could rise toward 0.7880. The next stop for the bulls might be 0.7935.

On the downside, immediate support on the USD/CHF chart is 0.7800. The first major breakdown zone could be 0.7790. A close below 0.7790 might send the pair to 0.7740. Any more losses may possibly open the doors for a move toward 0.7700 in the coming days.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.