EUR/USD Gains Bearish Momentum While USD/CHF Extends Rally
EUR/USD started a major decline below the 1.0620 level. USD/CHF is rising and might aim more gains above the 0.9450 resistance.
Important Takeaways for EUR/USD and USD/CHF
· The Euro started a fresh decline from the 1.0700 resistance against the US Dollar.
· There was a break below a key bullish trend line with support near 1.0620 on the hourly chart of EUR/USD.
· USD/CHF started a fresh increase above the 0.9350 resistance zone.
· There was a break above a major bearish trend line with resistance near 0.9315 on the hourly chart.
EUR/USD Technical Analysis
After struggling to clear the 1.0700 resistance, the Euro started a fresh decline against the US Dollar. The EUR/USD pair traded below the 1.0620 support zone to enter a bearish zone.
The pair even declined below the 1.0600 level above the 50 hourly simple moving average. There was also a break below a key bullish trend line with support near 1.0620 on the hourly chart of EUR/USD. The decline gained pace below the 1.0580 level.
A low is formed near 1.0531 on FXOpen and the pair is now showing a lot of bearish signs. An immediate resistance is near the 1.0570 level. It is near the 23.6% Fib retracement level of the downward move from the 1.0694 swing high to 1.0531 low.
The next major resistance is near the 1.0610 level. It is near the 50% Fib retracement level of the downward move from the 1.0694 swing high to 1.0531 low.
A clear move above the 1.0610 resistance zone could send the pair further higher. Any more gains might open the doors for a move towards the 1.0650 level. If there is no recovery, the pair might continue to move down below the 1.0530 level.
On the downside, an immediate support is near the 1.0520 level. The next major support is near the 1.0500 level. A downside break below the 1.0500 support could start steady decline towards the 1.0450 level.
USD/CHF Technical Analysis
The US Dollar started a fresh increase from the 0.9280 support zone against the Swiss franc. The USD/CHF pair gained pace above the 0.9340 resistance to set the pace for a decent increase.
There was a clear move above the 0.9380 resistance zone and the 50 hourly simple moving average. Besides, there was a break above a major bearish trend line with resistance near 0.9315 on the hourly chart.
The bulls even pushed the pair above 0.9400 level. A high was formed near 0.9435 and the pair is now consolidating gains. An immediate resistance is near the 0.9450 level.
The next major resistance is near the 0.9500 level. If there is a clear break above the 0.9500 resistance zone, the pair could start another increase. In the stated case, it could test 0.9620.
On the downside, an immediate support is near the 0.9400 level. It is near the 23.6% Fib retracement level of the upward move from the 0.9286 swing low to 0.9435 high. The next major support is near the 0.9380 level and the 50 hourly simple moving average.
Any more losses may possibly open the doors for a move towards the 0.9320 level or even 0.9280 in the coming days.
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.