EUR/USD Eyeing Upside Break, USD/CHF Extended Slides

FXOpen

EUR/USD recovered recently and traded above the 1.1420 resistance. USD/CHF is currently under pressure and it could continue to move down towards 0.9990 or 0.9970.

Important Takeaways for EUR/USD and USD/CHF

  • The Euro formed a decent support near 1.1360 and recovered recently against the US Dollar.
  • There is a major bullish trend line in place with support at 1.1415 on the hourly chart of EUR/USD.
  • USD/CHF is currently following a key bearish trend line with resistance at 1.0035 on the hourly chart.
  • The pair may continue to decline towards the 0.9990 or 0.9970 support level.

EUR/USD Technical Analysis

The Euro found a strong support near the 1.1300-1.1310 zone this week against the US Dollar. The EUR/USD pair started an upward move and recovered above 1.1360 and 1.1400.

The recent recovered was convincing as there was a close above the 1.1360 resistance and the 50 hourly simple moving average. An intermediate swing low was formed at 1.1353 before the pair rallied above 1.1400.

EUR/USD Technical Analysis Chart

The pair recently traded as high as 1.1472 where sellers emerged, resulting in a sharp downside correction. Sellers pushed the pair below the 1.1420 level and the 50% Fib retracement level of the last wave from the 1.1353 low to 1.1472 high.

However, losses were contained near the 1.1400 handle and the 50 hourly simple moving average. Moreover, the 61.8% Fib retracement level of the last wave from the 1.1353 low to 1.1472 high also acted as a strong support.

Finally, there is a major bullish trend line in place with support at 1.1415 on the hourly chart, which is another strong support for buyers. Therefore, the pair may bounce back and it could soon break the 1.1472 swing high in the near term.

The next key resistance for buyers in near the 1.1500 zone, above which the pair may trade towards 1.1540. On the downside, the 1.1420 level is a solid support followed by the 1.1400 handle and the 50 hourly SMA.

USD/CHF Technical Analysis

The US Dollar started a bearish wave from the 1.0095 swing high against the Swiss franc. The USD/CHF pair declined and broke the 1.0050 and 1.0000 support levels.

The pair traded as low as 0.9969 and later recovered above 1.0040. However, the upside move was capped by the 1.0070 level and a key bearish trend line with current resistance at 1.0035 on the hourly chart.

USD/CHF Technical Analysis Chart

The pair was rejected, resulting in a fresh drop below 1.0020 and the 50 hourly simple moving average. Recently, the pair recovered above the 1.0010 level and the 50% Fib retracement level of the last decline from the 1.0068 high to 0.9988 low.

However, the same bearish trend line prevented gains along with the 50 hourly SMA. Besides, the 76.4% Fib retracement level of the last decline from the 1.0068 high to 0.9988 low also acted as a hurdle for buyers.

The pair is currently declining and it is trading near the 1.0000 support. It seems like sellers are in control and the pair may continue to move down towards the 0.9990 or 0.9970 support level.

On the other hand, if there is an upside correction, the pair could find a solid resistance near 1.0035 and the 50 hourly SMA. To move into a bullish zone, buyers need to push the pair above the 1.0050 resistance zone in the near term.

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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.

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