EUR/USD is rising and it is likely to accelerate higher above 1.1910. USD/CHF is struggling to recover and it could dive below the 0.9100 support zone.
Important Takeaways for EUR/USD and USD/CHF
- The Euro started a fresh increase above the 1.1850 and 1.1880 resistance levels against the US Dollar.
- There was a break above a key bearish trend line with resistance near 1.1888 on the hourly chart of EUR/USD.
- USD/CHF failed to climb above 0.9150 and started a fresh decline.
- There is a major bearish trend line forming with resistance near 0.9120 on the hourly chart.
EUR/USD Technical Analysis
After forming a strong support base near 1.1810 and 1.1820, the Euro started a fresh increase against the US Dollar. The EUR/USD pair surpassed the 1.1850 resistance level to move into a positive zone.
The upward move gained pace above the 1.1880 resistance level and the 50 hourly simple moving average. More importantly, there was a break above a key bearish trend line with resistance near 1.1888 on the hourly chart of EUR/USD.
The pair even broke the last swing high at 1.1894 formed on FXOpen. It is now trading near the 1.1910 resistance level and testing the 1.236 Fib extension level of the downward move from the 1.1894 high to 1.1841 low.
A successful break above the 1.1910 and 1.1920 resistance levels could open the doors for more upsides. The next major resistance sits near the 1.1925 level since it is close to the 1.618 Fib extension level of the downward move from the 1.1894 high to 1.1841 low.
Any further gains could open the doors for a rally towards the 1.1980 resistance level. Conversely, the pair could fail to gain pace above 1.1910 or 1.1920. In the stated case, the pair could correct lower towards the 1.1865 and 1.1850 support levels. The main support sits at 1.1820.
USD/CHF Technical Analysis
The US Dollar made a few attempts to clear 0.9145 and 0.9150 resistance levels against the Swiss franc, but it failed. The USD/CHF pair traded as high as 0.9136 recently before declining.
There was a break below the 0.9120 support level and the 50 hourly simple moving average. The pair traded close to the 0.9100 level and a low is formed near 0.9103. It is currently consolidating losses and testing the 23.6% Fib retracement level of the recent decline from the 0.9136 high to 0.9103 low.
On the upside, an initial resistance is near the 0.9120 level. There is also a major bearish trend line forming with resistance near 0.9120 on the hourly chart.
The trend line is close to the 50% Fib retracement level of the recent decline from the 0.9136 high to 0.9103 low. Therefore, a clear break above the 0.9120 resistance level is needed for a fresh increase in the coming sessions.
The next major resistance is near the 0.9145 and 0.9150 levels, above which the bulls could aim 0.9200. On the downside, the 0.9105 and 0.9100 levels are important. A clear break below the 0.9100 support may perhaps open the doors for a larger decline.
The next major support is near the 0.9075 level, below which the pair could test 0.9050. Any further losses could lead USD/CHF towards the 0.9020 support level in the near term.
* FXOpen International, best ECN broker of 2021, according to the IAFT