Market Analysis: EUR/USD Struggles To Recover While USD/CHF Rallies

FXOpen

EUR/USD is attempting a recovery wave from the 1.0675 zone. USD/CHF climbed higher above 0.8900 and might extend gains in the near term.

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

· The Euro declined toward 1.0675 before it started a recovery wave against the US Dollar.

· There is a key bullish trend line forming with support at 1.0710 on the hourly chart of EUR/USD at FXOpen.

· USD/CHF climbed higher above the 0.8900 and 0.8935 resistance levels.

· There is a connecting bullish trend line forming with support at 0.8930 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair extended the decline below the 1.0720 support zone. The Euro even declined below 1.0700 before the bulls appeared against the US Dollar, as mentioned in the previous analysis.

The pair tested the 1.0675 zone and recently started a recovery wave. There was a move above the 1.0710 resistance zone, but the bears were active near 1.0745. As a result, there was another pullback to 1.0690 and the pair is now consolidating below the 50-hour simple moving average.

Immediate resistance on the EUR/USD chart is near the 1.0718 zone. It is close to the 50% Fib retracement level of the downward move from the 1.0744 swing high to the 1.0690 low.

The first major resistance is near the 1.0725 level or the 61.8% Fib retracement level of the downward move from the 1.0744 swing high to the 1.0690 low. An upside break above the 1.0725 level might send the pair toward the 1.0745 resistance.

The next major resistance is near the 1.0780 level. Any more gains might open the doors for a move toward the 1.0820 level. Immediate support on the downside sits at 1.0710.

There is also a key bullish trend line forming with support at 1.0710. The next major support is the 1.0695 zone. A downside break below the 1.0695 support could send the pair toward the 1.0675 level. Any more losses might send the pair to 1.0650.

Read analytical EUR/USD price forecasts for 2024 and beyond.

USD/CHF Technical Analysis

On the hourly chart of USD/CHF at FXOpen, the pair started a decent increase from the 0.8830 support. The US Dollar climbed above the 0.8900 resistance zone against the Swiss Franc.

The bulls were able to pump the pair above the 50-hour simple moving average and 0.8935. Finally, the pair tested the 0.89550 zone. A high was formed near 0.8956 and the pair is now consolidating gains. The pair tested the 23.6% Fib retracement level of the upward move from the 0.8913 swing low to the 0.8956 high.

On the downside, immediate support on the USD/CHF chart is near the 0.8945 zone. The first major support is near the 61.8% Fib retracement level of the upward move from the 0.8913 swing low to the 0.8956 high at 0.8930.

There is also a connecting bullish trend line forming with support at 0.8930. A downside break below 0.8930 might spark bearish moves. The next major support is 0.8915.

Any more losses may possibly open the doors for a move toward the 0.8850 level in the near term. On the upside, the pair is now facing resistance near 0.8955. The next major resistance is at 0.8980. The main resistance is now near 0.9000. If there is a clear break above the 0.9000 resistance zone and the RSI climbs above 70, the pair could start another increase. In the stated case, it could test 0.9080.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. 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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

What Is a Global Macro Strategy, and How Do Traders Use It in Trading?
Trader’s Tools

What Is a Global Macro Strategy, and How Do Traders Use It in Trading?

A global macro strategy is a comprehensive investment and trading approach that includes analysis of economic, political, and global trends to make decisions. This article delves into the core components, analytical tools, and practical applications of global macro strategy, providing

Commodity Currencies in Stable Ranges: Should We Expect a Breakout?
Forex Analysis

Commodity Currencies in Stable Ranges: Should We Expect a Breakout?

The currency pairs AUD/USD and USD/CAD, unlike the pairs with the Euro, Yen, and Sterling, continue to demonstrate long-term stability. These pairs have been trading in narrow price corridors for several months. Given the weakening of the dollar

Commodities

Analysis of XAU/USD: Gold Price Sets Historical Record

As the XAU/USD chart shows, on 16th July, the gold price rose above $2460 for the first time in history. The bullish sentiment is driven by:

→ Anticipation of Fed rate cuts, as the appeal of non-yielding bullion generally increases

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.