EUR/USD and USD/CHF: Dollar Correcting Gains

EUR/USD is eyeing a key upside break above 1.1380 and 1.1400. USD/CHF remains supported on the downside near the 0.9200 zone.

Important Takeaways for EUR/USD and USD/CHF

· The Euro is slowly moving higher above the 1.1350 resistance zone against the US Dollar.

· There is a key bullish trend line forming with support near 1.1315 on the hourly chart of EUR/USD.

· USD/CHF started a downside correction from the 0.9280 resistance zone.

· There is a major bullish trend line forming with support near 0.9215 on the hourly chart.

EUR/USD Technical Analysis

The Euro remained well bid above the 1.1300 zone against the US Dollar. The EUR/USD pair started a slow increase and there was a break above the 1.1320 resistance zone.

There was a clear break above the 1.1340 and 1.1350 levels. The pair climbed above the 76.4% Fib retracement level of the key decline from the 1.1364 swing high to 1.1284 low (formed on FXOpen).

It is now trading above 1.1370 level and the 50 hourly simple moving average. On the upside, an initial resistance is near the 1.1380 level.

The 1.236 Fib extension level of the key decline from the 1.1364 swing high to 1.1284 low is also near the 1.1380 level. The next major resistance is near the 1.1400 zone. A clear upside break above the 1.1400 zone could open the doors for a steady move.

The next major resistance sits near the 1.1450 level. On the downside, an immediate support is near the 1.1340 level. The next major support is near the 1.1320 level.

There is also a key bullish trend line forming with support near 1.1315 on the hourly chart of EUR/USD. A downside break below the 1.1320 support could start another decline. The next major support sits near 1.1300.

USD/CHF Technical Analysis

The US Dollar formed a base near the 0.9180 level and started a fresh increase against the Swiss franc. The USD/CHF pair surpassed the 0.9220 resistance zone to move into a bullish region.

There was a break above the 0.9250 resistance zone and the 50 hourly simple moving average. It even tested the 0.9280 resistance and started a downside correction. There was a break below the 23.6% Fib retracement level of the upward move from the 0.9181 swing low to 0.9277 high.

An initial resistance is near the 0.9250 level. If there is a clear break above the 0.9250 resistance zone, the pair could start another increase. The next major resistance is near the 0.9280. Any more gains could lift the pair towards the 0.9320 level.

On the downside, the pair might find bids near the 0.9220 level. It is near the 50% Fib retracement level of the upward move from the 0.9181 swing low to 0.9277 high.

Besides, there is a major bullish trend line forming with support near 0.9215 on the hourly chart. The main support is now forming near the 0.9200 level. Any more losses may possibly open the doors for a move towards the 0.9165 level. The next major support below 0.9165 is near the 0.9120.

This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.