EUR/USD Correcting Lower While USD/CHF Is Recovering

FXOpen

EUR/USD gained momentum and traded towards the 1.1410 level before correcting lower. USD/CHF declined close to the 0.9690 level and it is currently recovering.

Important Takeaways for EUR/USD and USD/CHF

  • The Euro climbed higher in the past few days and broke the 1.1380 resistance against the US Dollar.
  • There is a key bullish trend line forming with support near 1.1345 on the hourly chart of EUR/USD.
  • USD/CHF declined heavily and traded to a new monthly low near the 0.9693 level.
  • The pair is currently testing a major bearish trend line with resistance at 0.9765 on the hourly chart.

EUR/USD Technical Analysis

The Euro started a steady rise after forming a support base near the 1.1190 level against the US Dollar. The EUR/USD pair climbed above the 1.1240 and 1.1280 resistance levels. The pair even gained momentum above the 1.1350 resistance area.

Finally, the pair surged above the 1.1380 level and the 50 hourly simple moving average. It traded to a new monthly high at 1.1412 on FXOpen and recently started a downside correction.

EUR/USD Technical Analysis Euro Dollar Chart

It broke the 1.1380 support plus the 23.6% Fib retracement level of the last wave from the 1.1283 low to 1.1412 high. There was a close below 1.1380 and the 50 hourly simple moving average.

However, the 1.1350 level is acting as a strong support. Moreover, the 50% Fib retracement level of the last wave from the 1.1283 low to 1.1412 high is acting as a support.

Additionally, there is a key bullish trend line forming with support near 1.1345 on the hourly chart of EUR/USD. If the pair fails to stay above the trend line support, there could be more losses.

The next key support is near the 1.1330 level, below which the pair might test the 1.1315 pivot level. On the upside, an initial resistance is near the 1.1380 level and the 50 hourly SMA. If there is a fresh increase above 1.1380, EUR/USD is likely to revisit the 1.1410 level in the near term.

USD/CHF Technical Analysis

The US Dollar started a significant downward move from well above the 1.0000 level against the Swiss franc. The USD/CHF pair broke the 0.9950 and 0.9920 support levels to move into a bearish zone.

The pair even broke the 0.9850 support and settled below the 50 hourly simple moving average. Finally, there was a break below the 0.9750 support and the pair traded as low as 0.9693.

USD/CHF Technical Analysis

Recently, it started an upside correction above the 0.9700 and 0.9720 levels. There was a break above the 38.2% Fib retracement level of the last decline from the 0.9838 high to 0.9693 swing low.

Furthermore, there was a break above 0.9750 and the 50 hourly simple moving average. However, the pair is now facing a strong resistance near the 0.9765 level.

The 50% Fib retracement level of the last decline from the 0.9838 high to 0.9693 swing low is also acting as a hurdle for the bulls. There is also a major bearish trend line forming with resistance at 0.9765 on the hourly chart.

If USD/CHF clears the trend line resistance, there are chances of more gains in the near term. In the mentioned case, it could trade towards the 0.9800 or 0.9820 level.

Conversely, if there is no break above 0.9765 and 0.9770, the pair may perhaps slide again. An immediate support is near 0.9745, followed by the 0.9700 handle.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: American Currency Rises Sharply after Fed Meeting Will Stagflation Persist in the UK? EUR/GBP Volatility May Be an Indicator Market Analysis: Commodity Currencies Find Short-term Bottom USD/CAD Analysis: How the Bank of Canada Decision Affected the National Currency Commodity Currencies, Pound and Euro in Search of Medium-term Bottom

Latest articles

Forex Analysis

Market Analysis: American Currency Rises Sharply after Fed Meeting

As expected, the decision on the interest rate had a powerful impact on the markets. Thus, the euro/US dollar pair lost more than 100 pp in just a couple of hours and updated its recent low at 1.0630,

Commodities

Oil Analysis: Finally, A Bearish Reversal?

The policy of OPEC+ countries to voluntarily reduce oil production was one of the drivers thanks to which the price of WTI oil increased by approximately 40% from its low in June. In such cases, it is appropriate to use

Commodities

Central Bank Week Shakes Up Gold Market

Yesterday, the main event of the week took place — the Federal Reserve meeting, which had a noticeable impact on the market of assets denominated in US dollars. But besides the Fed meeting, there are a number of other events this

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.