EUR/USD Eyes Steady Recovery While USD/CHF Might Slide

FXOpen

EUR/USD started a recovery wave after a sharp decline post the US CPI release. USD/CHF is declining and might slide below the 0.9975 support.

Important Takeaways for EUR/USD and USD/CHF

· The Euro is slowly moving higher above the 0.9750 resistance zone against the US Dollar.

· There was a break above a major bearish trend line with resistance near 0.9700 on the hourly chart of EUR/USD.

· USD/CHF started a fresh decline after it failed to clear the 1.0075 resistance.

· There is a major bullish trend line forming with support near 0.9985 on the hourly chart.

EUR/USD Technical Analysis

This week, the Euro saw a major decline below the 0.9750 support against the US Dollar. The EUR/USD pair declined below the 0.9700 support level to move further into a bearish zone.

The pair formed a base above the 0.9640 level and recently started an upside correction. There was a move above the 0.9680 and 0.9700 resistance levels. There was a break above a major bearish trend line with resistance near 0.9700 on the hourly chart of EUR/USD.

EUR/USD Hourly Chart

The pair even broke the 50% Fib retracement level of the downward move from the 0.9926 swing high to 0.9631 low. The pair climbed above the 0.9750 level and the 50 hourly simple moving average.

An immediate resistance is near the 0.9815 level. It is near the 61.8% Fib retracement level of the downward move from the 0.9926 swing high to 0.9631 low. The next major resistance is near the 0.9850 level.

A clear move above the 0.9850 resistance zone could set the pace for a larger increase towards 1.0000. The next major resistance is near the 1.0050 zone.

On the downside, an immediate support is near the 0.9750 level. The next major support is near the 0.9720 level and the 50 hourly simple moving average. A downside break below the 0.9720 support could start another decline.

USD/CHF Technical Analysis

The US Dollar formed a support base near the 0.9915 and started a fresh increase against the Swiss franc. The USD/CHF pair traded above the 1.0000 level to move into a positive zone.

The pair even climbed above the 1.0050 level and the 50 hourly simple moving average. The pair climbed as high as 1.0074 and is currently correcting lower. There was a drop below the 1.0020 level.

USD/CHF Hourly Chart

The pair declined below the 50% Fib retracement level of the upward move from the 0.9915 swing low to 1.0074 high. The pair is now consolidating near 0.9985. On the downside, an immediate support is near the 0.9980 level.

There is also a major bullish trend line forming with support near 0.9985 on the hourly chart. The 61.8% Fib retracement level of the upward move from the 0.9915 swing low to 1.0074 high is just below the trend line.

Any more losses may possibly open the doors for a move towards the 0.9915 level. If not, the pair might rise again. An immediate resistance is near the 1.0020 level.

The next major resistance is near the 1.0050 level. If there is a clear break above the 1.0050 resistance zone, the pair could start another increase. In the stated case, it could test 1.0120.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

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: The American Currency Resumes Growth EUR/USD Analysis: The Rate Updates Its Multi-month Low Market Analysis: Dollar Falls After Inflation Data Release Euro Analysis: ECB Cautions Against Rate Cuts Amid Inflation Battle Market Analysis: GBP/USD Struggles While EUR/GBP Eyes Increase

Latest articles

Shares

Top 5 Stocks to Watch in October: Bank on the Backfoot, No Thirst for Coca-Cola, Tech Giant Takes Dip and Electric Vehicle Volatility

October is here, and as the markets enter a new month, we take a closer look at five stocks that could be of significant interest to investors. 1) Bank of AmericaBank of America stock has taken a dive over the

Forex Analysis

Market Analysis: The American Currency Resumes Growth

The beginning of October turned out to be favourable for continued growth in the US dollar. From the data published yesterday, it follows that in September, the US manufacturing business activity index (PMI) rose to 49.0 against the forecast

Forex Analysis

EUR/USD Analysis: The Rate Updates Its Multi-month Low

Never in its history has the euro fallen for 11 weeks in a row against the dollar, but it happened. The minimum has been set for 2023. The reason seems to be that in an environment where central banks are

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.