EUR/USD Faces Hurdle, USD/CHF Could Gain Pace
EUR/USD declined heavily below the 1.1000 and 1.0980 levels. USD/CHF could gain pace if there is a move above the 0.9320 resistance.
Important Takeaways for EUR/USD and USD/CHF
· The Euro started a major decline from the 1.1180 resistance zone against the US Dollar.
· There is a major bearish trend line with resistance near 1.0925 on the hourly chart of EUR/USD.
· USD/CHF formed a base above the 0.9220 support zone and started a decent increase.
· There is a key rising channel forming with support near 0.9270 on the hourly chart.
EUR/USD Technical Analysis
The Euro struggled to gain pace above the 1.1180 resistance level against the US Dollar. The EUR/USD pair started a fresh decline below the 1.1150 and 1.1100 support levels.
There was a clear move below the 1.1000 level and the 50 hourly simple moving average. The pair even declined below the 1.0940 support level. It traded as low as 1.0890 on FXOpen and the pair is now consolidating losses.
On the upside, an initial resistance is near the 1.0915 level. It is near the 23.6% Fib retracement level of the recent decline from the 1.0988 swing high to 1.0890 low.
The next major resistance is near the 1.0920 zone. There is also a major bearish trend line with resistance near 1.0925 on the hourly chart of EUR/USD. A clear upside break above the 1.0925 zone could open the doors for a steady move.
The next major resistance sits near the 1.0940 level. It is near the 50% Fib retracement level of the recent decline from the 1.0988 swing high to 1.0890 low. A close above 1.0940 and 1.0950 could send EUR/USD further higher.
On the downside, an immediate support is near the 1.0890 level. The next major support is near the 1.0880 level. A downside break below the 1.0880 support could start another decline.
USD/CHF Technical Analysis
The US Dollar started a decent increase from the 0.9200 support zone against the Swiss franc. The USD/CHF pair formed a base above 0.9220 to move into a positive zone.
The pair was able to clear the 0.9250 resistance zone and the 50 hourly simple moving average. The bulls pushed the pair above the 50% Fib retracement level of the key decline from the 0.9373 swing high to 0.9194 low.
It is now trading above the 0.9300 level. It is now facing resistance near the 0.9315 level. The next major resistance is near the 0.9330 level. It is near the 76.4% Fib retracement level of the key decline from the 0.9373 swing high to 0.9194 low.
If there is a clear break above the 0.9330 resistance zone, the pair could start another increase. The next major resistance is near the 0.9400. Any more gains could send the pair towards the 0.9420 level in the near term.
On the downside, the pair might find bids near the 0.9280 level. The main support is now forming near the 0.9260 level. There is also a key rising channel forming with support near 0.9270 on the hourly chart. Any more losses may possibly open the doors for a move towards the 0.9200 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.