EUR/USD Eyes Upside Break While USD/CHF Consolidates Gains

FXOpen

EUR/USD is struggling to climb above the 0.9920 resistance zone. USD/CHF is consolidating gains above the 0.9950 support zone.

Important Takeaways for EUR/USD and USD/CHF

· The Euro started a fresh decline and traded below the 0.9950 zone against the US Dollar.

· There is a major bearish trend line forming with resistance near 0.9905 on the hourly chart of EUR/USD.

· USD/CHF started a fresh increase after it was able to clear the 0.9920 resistance.

· There is a key bullish trend line forming with support near 0.9950 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro saw a major decline below the 0.9980 support against the US Dollar. The EUR/USD pair declined below the 0.9920 support level to move into a bearish zone.

The pair even tested the 0.9850 support zone. It is now forming a base above the 0.9850 level and is currently consolidating losses from the 0.9852 low formed on FXOpen. There was a minor recovery wave above the 0.9880 level.

EUR/USD Hourly Chart

The pair climbed above the 23.6% Fib retracement level of the downward move from the 0.9954 swing high to 0.9852 low. An immediate resistance is near the 0.9900 level and the 50 hourly simple moving average.

There is also a major bearish trend line forming with resistance near 0.9905 on the hourly chart of EUR/USD. It is near the 50% Fib retracement level of the downward move from the 0.9954 swing high to 0.9852 low.

The next major resistance is near the 0.9920 level. A clear move above the 0.9920 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 0.9865 level. The next major support is near the 0.9850 level. A downside break below the 0.9850 support could start another decline.

USD/CHF Technical Analysis

The US Dollar formed a support base near the 0.9850 and started a fresh increase against the Swiss franc. The USD/CHF pair traded above the 0.9920 level to move into a positive zone.

The pair even climbed above the 0.9950 level and the 50 hourly simple moving average. The pair climbed as high as 1.0032 before there was a drop to 0.9915. It is now rising and trading above the 0.9950 resistance.

USD/CHF Hourly Chart

There was above the 50% Fib retracement level of the downward move from the 1.0032 swing high to 0.9914 low. The pair is now consolidating near 0.9980. On the downside, an immediate support is near the 0.9970 level.

There is also a major bullish trend line forming with support near 0.9950 on the hourly chart. Any more losses may possibly open the doors for a move towards the 0.9865 level.

If not, the pair might rise again. An immediate resistance is near the 1.0000 level or the 76.4% Fib retracement level of the downward move from the 1.0032 swing high to 0.9914 low.

The next major resistance is near the 1.0030 level. If there is a clear break above the 1.0030 resistance zone, the pair could start another increase. In the stated case, it could test 1.0100.

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 Yen and European Currencies Headed to New Lows Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience USD/JPY Analysis: For the First Time This Year, the Rate Exceeds 149 Yen Per Dollar Market Analysis: US Dollar On the Rise Despite Weak PMI Data Market Analysis: GBP/USD Nosedives While USD/CAD Aims Higher

Latest articles

Forex Analysis

Market Analysis: The Yen and European Currencies Headed to New Lows

The main currency pairs began the last five-day trading period of September with a new wave of growth for the American currency. Changes in the Fed's point forecast for next year provided powerful support to the dollar, which, in turn,

Forex Analysis

Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience

In an intriguing turn of events, the US Federal Reserve has hinted at the possibility of yet another interest rate hike in the near future, keeping financial markets on their toes. During its September 2023 meeting, the Federal Reserve chose

Forex Analysis

USD/JPY Analysis: For the First Time This Year, the Rate Exceeds 149 Yen Per Dollar

The reason for the stable trend, as we have repeatedly pointed out, is the difference in the monetary policy of the USA and Japan. Inflation in Japan has been above 2% for more than a year, and the media 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.