EUR/USD started a recovery wave above 1.1220 and 1.1240. USD/CHF is declining and trading below the 0.9250 support zone.
Important Takeaways for EUR/USD and USD/CHF
· The Euro started an upside correction above the 1.1250 resistance zone against the US Dollar.
· There was a break above a major bearish trend line with resistance near 1.1230 on the hourly chart of EUR/USD.
· USD/CHF started a downside correction from the 0.9340 resistance zone.
· There was a break below a key bullish trend line with support near 0.9295 on the hourly chart.
EUR/USD Technical Analysis
The Euro started a major decline from well above the 1.1350 level against the US Dollar. The EUR/USD pair traded below the 1.1250 support zone to move into a bearish zone.
The pair traded as low as 1.1121 on FXOpen and recently started an upside correction. The pair was able to clear the 1.1200 resistance zone and the 50 hourly simple moving average. There was a move above the 50% Fib retracement level of the key decline from the 1.1359 swing high to 1.1121 low.
Besides, there was a break above a major bearish trend line with resistance near 1.1230 on the hourly chart of EUR/USD. It is now trading above 1.1250 level and the 61.8% Fib retracement level of the key decline from the 1.1359 swing high to 1.1121 low.
On the upside, an initial resistance is near the 1.1300 level. The next major resistance is near the 1.1320 zone. A clear upside break above the 1.1320 zone could open the doors for a steady move.
The next major resistance sits near the 1.1420 level. On the downside, an immediate support is near the 1.1240 level. The next major support is near the 1.1220 level. A downside break below the 1.1220 support could start another decline.
USD/CHF Technical Analysis
The US Dollar started a fresh increase above the 0.9250 resistance zone against the Swiss franc. The USD/CHF pair even surpassed the 0.9300 resistance zone to move into a bullish region.
However, the bears appeared near the 0.9340 level. A high was formed near 0.9342 before the pair started a fresh decline. There was a break below the 0.9250 support level and the 50 hourly simple moving average.
The pair declined below the 50% Fib retracement level of the upward move from the 0.9108 swing low to 0.9342 high. On the downside, the pair might find bids near the 0.9200 level.
It is near the 61.8% Fib retracement level of the upward move from the 0.9108 swing low to 0.9342 high. The main support is now forming near the 0.9180 level. Any more losses may possibly open the doors for a move towards the 0.9150 level.
The next major support below 0.9150 is near the 0.9120. On the upside, an initial resistance is near the 0.9240 level. If there is a clear break above the 0.9240 resistance zone, the pair could start another increase.
The next major resistance is near the 0.9285. Any more gains could send the pair towards the 0.9350 level in the near term.
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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