EUR/USD declined heavily below 1.2000 and it tested 1.1850. USD/CHF is rising and it could rally further if it clears the 0.9200 and 0.9220 resistance levels.
Important Takeaways for EUR/USD and USD/CHF
- The Euro started a fresh decline from well above the 1.2000 zone against the US Dollar.
- There was a break above a connecting bearish trend line with resistance near 1.1900 on the hourly chart of EUR/USD.
- USD/CHF gained bullish momentum above the 0.9050 and 0.9120 resistance levels.
- There is a key bearish trend line forming with resistance near 0.9200 on the hourly chart.
EUR/USD Technical Analysis
The Euro struggled to gain pace above the 1.2150 level and it started a major decline against the US Dollar. As a result, the EUR/USD pair broke the main 1.2000 support zone to move into a bearish zone.
The pair even declined below the 1.1920 support zone and settled below the 50 hourly simple moving average. A low was formed near 1.1846 on FXOpen and the pair is now correcting losses. It corrected above the 1.1880 and 1.1900 resistance levels.
There was a break below the 23.6% Fib retracement level of the recent decline from the 1.2147 high to 1.1846 low. There was also a break above a connecting bearish trend line with resistance near 1.1900 on the hourly chart of EUR/USD.
It is now trading nicely above the 1.1900 support zone and the 50 hourly SMA. On the upside, the pair is facing hurdles near the 1.1940 and 1.1950 levels. A clear upside break above 1.1950 could set the pace for a larger recovery.
The next major resistance is near the 1.2000 zone. On the downside, there is a major support forming near the 1.1900 zone. The next key support is near the 1.1880 level. A downside break below the 1.1880 support could restart decline. The next major support could be near the 1.1820 level.
USD/CHF Technical Analysis
The US Dollar started a major increase from the 0.8980 zone against the Swiss franc. The USD/CHF pair broke the 0.9050 resistance and gained bullish momentum.
The pair even broke the 0.9120 resistance and the 50 hourly simple moving average. It even traded above the 0.9200 level before the bears appeared near the 0.9240 zone. A high was formed near 0.9238 before the pair corrected lower.
It traded below 0.9200 and the 50 hourly simple moving average. The pair tested the 23.6% Fib retracement level of the upward move from the 0.8965 low to 0.9238 high.
It is now recovering, but it is facing hurdles near 0.9200. There is also a key bearish trend line forming with resistance near 0.9200 on the hourly chart. A clear upside break above the trend line could start a fresh increase.
The next major resistance is near the 0.9220. A successful break above the 0.9220 resistance could open the doors for a break above 0.9250. The next key resistance is near the 0.9320 zone.
On the downside, the pair might find bids near the 0.9175 level. Any more losses could set the pace for a drop towards the 0.9120 level in the near term. The next major support for the bulls is seen near the 0.9080 level.
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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