EUR/USD Remains at Risk, USD/CHF Correcting Gains

Aayush Jindal -

EUR/USD started a fresh decline below the 1.2000 and 1.1920 support levels. USD/CHF traded towards the 0.9375 level before correcting gains.

Important Takeaways for EUR/USD and USD/CHF

  • The Euro started a fresh drop below the 1.2000 and 1.1920 support levels against the US Dollar.
  • There is a key bearish trend line forming with resistance near 1.1890 on the hourly chart of EUR/USD.
  • USD/CHF followed a bullish path and it broke the 0.9300 resistance zone before correcting lower.
  • There was a break below a connecting bullish trend line with support near 0.9295 on the hourly chart.

EUR/USD Technical Analysis

The Euro failed to extend gains above 1.2120 and started a fresh decline against the US Dollar. The EUR/USD pair broke the key 1.2000 pivot zone to move into a bearish zone.

The pair even broke the 1.1920 support level and settled below the 50 hourly simple moving average. The bears were able to push the pair below 1.1880 and a low is formed near 1.1836 on FXOpen.

It is currently correcting higher and trading above 1.1850. It even tested the 23.6% Fib retracement level of the recent decline from the 1.2112 high to 1.1836 low. There is also a key bearish trend line forming with resistance near 1.1890 on the hourly chart of EUR/USD.

If there is a break above the trend line resistance, the pair could correct higher towards the 1.1940 level. The next major resistance is near the 1.1975 level. It is close to the 50% Fib retracement level of the recent decline from the 1.2112 high to 1.1836 low.

If there is no upside break, the pair might continue to move down below 1.1850. The next key support is near the 1.1835 level, below which EUR/USD could decline towards the 1.1800 support. Any more losses could open the doors for a move towards the 1.1750 level.

USD/CHF Technical Analysis

The US Dollar formed a strong support near the 0.9050 level and started a fresh increase against the Swiss franc. The USD/CHF pair broke many important hurdles near 0.9150 to move further into a positive zone.

The pair gained pace above the 0.9240 resistance and the 50 hourly simple moving average. There was also a break above the 0.9300 resistance zone. A high was formed near 0.9375 before the pair started a downside correction.

USD/CHF corrected lower below the 0.9350 support. There was also a break below a connecting bullish trend line with support near 0.9295 on the hourly chart.

The pair even spiked below 0.9300 and traded as low as 0.9271. It is currently correcting higher and trading above the 0.9295 level. It is testing the 23.6% Fib retracement level of the recent decline from the 0.9375 high to 0.9271 low.

If the pair starts a fresh increase, it could soon test the 0.9320 resistance and the 50 hourly simple moving average. The 50% Fib retracement level of the recent decline from the 0.9375 high to 0.9271 low is also near the 0.9320 level.

The next key resistance is near the 0.9350 level, above which USD/CHF is likely to accelerate higher towards the 0.9400 level. Conversely, the pair could start a fresh decline below the 0.9280 and 0.9265 support levels. The next major support is near 0.9200.