EUR/USD struggled to clear the 1.1880 resistance and decline below 1.1820. USD/CHF is showing positive signs and it could gain momentum above 0.9100.
Important Takeaways for EUR/USD and USD/CHF
- The Euro struggled to hold gains and declined below the 1.1820 support against the US Dollar.
- There was a break below a major contracting triangle with support near 1.1810 on the hourly chart of EUR/USD.
- USD/CHF started a fresh increase from the 0.9040 support zone and climbed above 0.9065.
- There is a key rising channel forming with support near 0.9075 on the hourly chart.
EUR/USD Technical Analysis
After a rejection near the 1.1880 zone, the Euro reacted to the downside against the US Dollar. The EUR/USD pair broke the 1.1850 and 1.1840 support levels to move into a bearish zone.
The pair even broke the 1.1820 support and settled below the 50 hourly simple moving average. More importantly, there was a break below a major contracting triangle with support near 1.1810 on the hourly chart of EUR/USD.
The pair is now trading below the 1.1800 level and formed a low at 1.1770 on on FXOpen. If there is an upside correction, the 1.1795 level might act as a resistance. The next resistance is near 1.1800 or the 50% Fib retracement level of the recent decline from the 1.1838 high to 1.1770 low.
On the upside, the first key resistance is near the 1.1815 level. It is close to the 61.8% Fib retracement level of the recent decline from the 1.1838 high to 1.1770 low.
To move back into a positive zone, the pair must break the 1.1800, 1.1815, and 1.1815 resistance levels. Conversely, the pair might continue to move down below the 1.1770 level.
The first major support on the downside is near the 1.1750 level. A clear break below the 1.1750 support level could spark a sharp decline towards the 1.1720 and 1.1705 levels in the coming sessions.
USD/CHF Technical Analysis
After a steady decline, the US Dollar found support near the 0.9040 area against the Swiss franc. The USD/CHF pair formed a support base and started a fresh upward move above the 0.9050 resistance.
There was a break above the 0.9075 resistance level and the 50 hourly simple moving average. The pair even traded close to the 0.9100 level and a high is formed at 0.9099. It is currently correcting lower and traded below 0.9090.
There was a break below the 23.6% Fib retracement level of the recent increase from the 0.9062 low to 0.9099 high. There is also a key rising channel forming with support near 0.9075 on the hourly chart.
The channel support is close to the 50% Fib retracement level of the recent increase from the 0.9062 low to 0.9099 high. If there is a downside break below the channel support, there is a risk of a fresh decline below the 0.9050 support.
The next major support is near the 0.9030 level, below which the pair could test 0.9000. On the upside, the 0.9100 level is a key hurdle for the bulls.
A clear break above the 0.9100 level might lead the pair above the 0.9120 resistance. The next key resistance is near the 0.9150 level, where the bears might take a stand.
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