EUR/USD and USD/CHF Could Continue Higher

Aayush Jindal -

EUR/USD traded higher recently and moved above the 1.1740 resistance. Similarly, USD/CHF is placed nicely in an uptrend above the 0.9630 support.

Important Takeaways for EUR/USD and USD/CHF

  • The Euro gained traction and broke the 1.1710 and 1.1740 resistances against the US Dollar.
  • There is a major bullish trend line in place with support at 1.1750 on the hourly chart of EUR/USD.
  • USD/CHF is following a positive path above the 0.9600 support zone.
  • There is an important bullish trend line formed with support at 0.9630 on the hourly chart.

EUR/USD Technical Analysis

The Euro started a slow and steady rise from the 1.1620 swing low against the US Dollar. The EUR/USD pair traded higher and broke the 1.1680, 1.1710 and 1.1740 resistance levels.

The current price action indicates that the price is trading in a positive zone above the 1.1700 handle and the 50 hourly simple moving average. It recently traded close to the 1.1800 level, but buyers failed to hold gains.

A swing high was formed at 1.1792 and the pair started a downside correction. It declined below the 50% Fib retracement level of the last wave from 1.1731 low to 1.1792 high. However, losses were protected by the 1.1750 support area.

More importantly, there is a major bullish trend line in place with support at 1.1750 on the hourly chart of EUR/USD. The 61.8% Fib retracement level of the last wave from 1.1731 low to 1.1792 high is also near 1.1754.

Therefore, the pair remains well supported above the 1.1750 level. Should there be a break below the 1.1750 support, there could be more losses towards the 1.1800 level.

On the upside, the pair has to break the 1.1780 and 1.1800 levels to gain traction in the near term. The next major resistance is the 1.1820 level, above which the pair may trade to 1.1850.

USD/CHF Technical Analysis

The US Dollar surged higher recently after buyers appeared near the 0.9580 level against the Swiss franc. The USD/CHF pair traded above the 0.9600 and 0.9620 resistance levels to move into a positive zone.

The upside move was strong as the pair traded as high as 0.9670. Later, there was a downside correction and the pair traded below the 0.9650 level and the 23.6% Fib retracement level of the last wave from the 0.9579 low to 0.9670 high.

However, losses were protected by the 0.9630 level and the 38.2% Fib retracement level of the last wave from the 0.9579 low to 0.9670 high. Moreover, there is an important bullish trend line formed with support at 0.9630 on the hourly chart.

Therefore, if the pair continues to move down, the 0.9630 and 0.9620 levels are likely to act as supports in the short term. Below 0.9620, the pair could even break the 0.9600 support.

On the other hand, if the pair continues to move higher, it could break the 0.9670 high and trade further higher. The next major resistances is near the 0.9700 level, above which USD/CHF will most likely accelerate gains above the 0.9720 and 0.9740 levels.

The overall bias is positive as long as the pair is trading above the 0.9600 support zone.