EUR/USD and USD/CHF: Dollar Could Gains Momentum

EUR/USD is struggling to gain momentum above the 1.1300 zone. USD/CHF is rising, and it might extend gains above the 0.9250 level.

Important Takeaways for EUR/USD and USD/CHF

· The Euro failed to gain strength and declined below 1.1300 against the US Dollar.

· There was a break below a key bullish trend line with support near 1.1270 on the hourly chart of EUR/USD.

· USD/CHF started a decent increase from the 0.9200 support zone.

· There is a major bearish trend line forming with resistance near 0.9250 on the hourly chart.

EUR/USD Technical Analysis

The Euro attempted an upside break above the 1.1325 resistance zone against the US Dollar. The EUR/USD pair failed to gain strength above 1.1325 and started a fresh decline.

There was a clear break below the 1.1300 and 1.1280 support levels. Besides, there was a break below a key bullish trend line with support near 1.1270 on the hourly chart of EUR/USD. The pair even broke the 1.1260 support and the 50 hourly simple moving average.

It traded as low as 1.1250 on FXOpen and is consolidating losses. On the upside, an initial resistance is near the 1.1272 level. The 23.6% Fib retracement level of the recent decline from the 1.1326 swing high to 1.1250 low is also near 1.1272.

The next major resistance is near the 1.1285 zone. It is near the 50% Fib retracement level of the recent decline from the 1.1326 swing high to 1.1250 low. A clear upside break above the 1.1300 zone could open the doors for a steady move.

The next major resistance sits near the 1.1325 level. On the downside, an immediate support is near the 1.1250 level. The next major support is near the 1.1220 level.

A downside break below the 1.1220 support could start another decline. The next major support sits near 1.1150.

USD/CHF Technical Analysis

The US Dollar formed a base near the 0.9200 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 0.9335 resistance zone and the 50 hourly simple moving average. It is now trading above the last swing high at 0.9240. An initial resistance is near the 0.9250 level.

There is also a major bearish trend line forming with resistance near 0.9250 on the hourly chart. 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 0.9285. Any more gains could lift the pair towards the 0.9300 level.

On the downside, the pair might find bids near the 0.9230 level.  The main support is now forming near the 0.9220 level. It is near the 50% Fib retracement level of the upward move from the 0.9190 swing low to 0.9246 high.

Any more losses may possibly open the doors for a move towards the 0.9200 level. The next major support below 0.9200 is near the 0.9180, below which there is a risk of a move towards the 0.9120 level in the near term.

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.