EUR/USD is trading in a positive zone above the 1.2200 support. USD/CHF is declining and it could extend losses below the 0.8950 support zone.
Important Takeaways for EUR/USD and USD/CHF
- The Euro started a fresh increase and it broke the 1.2200 resistance zone against the US Dollar.
- There is a key expanding triangle forming with resistance near 1.2255 on the hourly chart of EUR/USD.
- USD/CHF started a fresh decline after it failed to clear the 0.9020 resistance zone.
- There was a break below a major bullish trend line with support near 0.8980 on the hourly chart.
EUR/USD Technical Analysis
The Euro formed a strong support base above the 1.2120 level against the US Dollar. As a result, the EUR/USD pair started a fresh increase and it traded above the main 1.2200 resistance zone.
The pair even surged above the 1.2220 level and settled above the 50 hourly simple moving average. A high was formed near 1.2254 on FXOpen and the pair is now correcting gains. It traded below the 1.2220 support level.
There was a break below the 23.6% Fib retracement level of the upward move from the 1.2132 swing low to 1.2254 high. It is now trading nicely above the 1.2200 support zone and the 50 hourly SMA.
There is also a key expanding triangle forming with resistance near 1.2255 on the hourly chart of EUR/USD. On the upside, the pair is facing hurdles near the 1.2240 and 1.2250 levels. A clear upside break above 1.2250 could set the pace for a larger increase.
On the downside, there is a major support forming near the 1.2200 zone. The next key support is near the 1.2190 level. It is near the 50% Fib retracement level of the upward move from the 1.2132 swing low to 1.2254 high.
A downside break below the 1.2190 support could increase selling pressure in the near term. The next major support could be near the 1.2150 level.
USD/CHF Technical Analysis
The US Dollar struggled to clear 0.9020 and started a fresh decline against the Swiss franc. The USD/CHF pair traded below the 0.9000 support zone to move into a bearish zone.
The pair even broke the 0.8980 support and the 50 hourly simple moving average. There was a break below a major bullish trend line with support near 0.8980 on the hourly chart.
The pair even spiked below 0.8950 and it traded as low as 0.8946. It recently started an upside correction and traded above the 0.8970 level. There was a break above the 23.6% Fib retracement level of the downward move from the 0.9029 high to 0.8946 low.
The next major resistance is near the 0.8980 level and the 50 hourly SMA. It is near the 50% Fib retracement level of the downward move from the 0.9029 high to 0.8946 low.
A successful break above the 0.8980 resistance could open the doors for a steady increase in the coming sessions. The next major resistance is near 0.9020, above which the pair could test 0.9065.
On the downside, the pair might find bids near the 0.8950 level. Any more losses could set the pace for a drop towards the 0.8920 level in the near term.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.
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