EUR/USD is trading in a positive zone above 1.2100, but it is facing hurdles near 1.2170. USD/CHF is struggling to hold the 0.8850 support and it could decline heavily.
Important Takeaways for EUR/USD and USD/CHF
- The Euro started a fresh increase above the 1.2050 and 1.2100 resistance levels against the US Dollar.
- There is a connecting bullish trend line forming with support near 1.2140 on the hourly chart of EUR/USD.
- USD/CHF remains in a bearish zone below the 0.8950 and 0.8920 resistance levels.
- There are two major bearish trend lines forming with resistance near 0.0.8870 on the hourly chart.
EUR/USD Technical Analysis
In the past few days, the Euro remained in a positive zone above the 1.2050 support zone against the US Dollar. The EUR/USD pair gained pace above the 1.2100 resistance to move into a positive zone.
The upward move was such that the pair broke the 1.2120 resistance and settled above the 50 hourly simple moving average. However, the pair seems to be facing a strong resistance near the 1.2165 and 1.2170 levels.
The recent high was formed near 1.2168 on FXOpen before there was a downside correction. There was a break below the 1.2155 level, and the pair traded below the 23.6% Fib retracement level of the upward move from the 1.2121 low to 1.2168 high.
The decline found support near the 1.2145 and the 50 hourly simple moving average. The 50% Fib retracement level of the upward move from the 1.2121 low to 1.2168 high is also acting as a support.
There is also a connecting bullish trend line forming with support near 1.2140 on the hourly chart of EUR/USD. On the upside, the pair could gain bullish momentum once it clears the 1.2165 and 1.2170 resistance levels.
Conversely, there is a risk of a downside break below the trend line and 1.2145. The next major support is near the 1.2120 level. Any more losses could spark a major decline below the 1.2100 support zone in the coming sessions.
USD/CHF Technical Analysis
The US Dollar started a major decline below the 0.8950 support zone against the Swiss franc. The USD/CHF pair even settled below the 0.8900 level to move into a bearish zone.
The decline gained pace below the 0.8880 level and the 50 hourly simple moving average. The pair is now consolidating above the 0.8850 support level, with a bearish angle. The recent low was formed near 0.8850 before the pair corrected above the 23.6% Fib retracement level of the recent decline from the 0.8878 high to 0.8850 low.
On the upside, an initial resistance is near the 0.8865 level and the 50 hourly simple moving average. The 50% Fib retracement level of the recent decline from the 0.8878 high to 0.8850 low is also near 0.8865.
More importantly, there are two major bearish trend lines forming with resistance near 0.0.8870 on the hourly chart. The pair must climb above 0.8865 and 0.8870 to increase the chances of a decent recovery.
The next major resistance is near the 0.9000 and 0.9005 levels. Conversely, a clear break below the 0.8850 support may perhaps open the doors for a larger decline.
The next major support is near the 0.8820 level, below which the pair could test 0.8800. Any further losses could lead USD/CHF towards the 0.8750 support level in the near term.
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