EUR/USD is struggling to clear the 1.0050 resistance zone. USD/CHF is rising and might climb higher towards the 0.9800 resistance zone.
Important Takeaways for EUR/USD and USD/CHF
· The Euro is facing a strong resistance near the 1.0050 zone against the US Dollar.
· There is a key bearish trend line forming with resistance near 1.0035 on the hourly chart of EUR/USD.
· USD/CHF started a fresh increase after it cleared the 0.9680 resistance zone.
· There was a break above a key contracting triangle with resistance near 0.9682 on the hourly chart.
EUR/USD Technical Analysis
This past week, the Euro saw a major decline below the 1.0000 support against the US Dollar. The EUR/USD pair declined below the 0.9950 support level before the bulls appeared.
The pair formed a base above the 0.9900 level and recently started an upside correction. There was a move above the 0.9920 and 0.9950 resistance levels. The pair climbed above the 1.0000 level and the 50 hourly simple moving average.
The pair traded above the 50% Fib retracement level of the downward move from the 1.0089 swing high to 0.9914 low. It is now consolidating above the 1.0020 level.
An immediate resistance is near the 1.0040 level. There is also a key bearish trend line forming with resistance near 1.0035 on the hourly chart of EUR/USD. The next major resistance is near the 1.0050 level. It is near the 76.4% Fib retracement level of the downward move from the 1.0089 swing high to 0.9914 low.
A clear move above the 1.0050 resistance zone could set the pace for a larger increase towards 1.0100. The next major resistance is near the 1.0150 zone.
On the downside, an immediate support is near the 1.0000 level. The next major support is near the 0.9950 level. A downside break below the 0.9950 support could start another decline.
USD/CHF Technical Analysis
The US Dollar formed a support base near the 0.9580 and started a fresh increase against the Swiss franc. The USD/CHF pair traded above the 0.9650 level to move into a positive zone.
The pair even climbed above the 0.9680 level and the 50 hourly simple moving average. There was also a break above a key contracting triangle with resistance near 0.9682 on the hourly chart. The pair climbed as high as 0.9762 and is currently correcting lower.
There was a minor decline below the 23.6% Fib retracement level of the upward move from the 0.9659 swing low to 0.9762 high. The pair is now consolidating near 0.9730.
An immediate resistance is near the 0.9740 level. The next major resistance is near the 0.9760 level. If there is a clear break above the 0.9760 resistance zone, the pair could start another increase. In the stated case, it could test 0.9800.
If not, the pair could decline towards the 0.9710 support. It is near the 50% Fib retracement level of the upward move from the 0.9659 swing low to 0.9762 high.
The main support is now forming near the 0.9700 level. Any more losses may possibly open the doors for a move towards the 0.9650 level.
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.
* FXOpen International, best ECN broker of 2021, according to the IAFT