EUR/USD is struggling to stay above the 0.9950 support zone. USD/CHF is rising and might climb higher towards the 0.9750 resistance zone.
Important Takeaways for EUR/USD and USD/CHF
· The Euro is struggling to recover and trading below the parity level against the US Dollar.
· There was a break below a key bullish trend line with support at 0.9990 on the hourly chart of EUR/USD.
· USD/CHF started a fresh increase after it cleared the 0.9600 resistance zone.
· There is a major bullish trend line forming with support near 0.9640 on the hourly chart.
EUR/USD Technical Analysis
This past week, the Euro saw a major decline below the 1.0040 support against the US Dollar. The EUR/USD pair declined below the 1.0000 support level to move further into a bearish zone.
The pair formed a base above the 0.9950 level and recently started an upside correction. There was a move above the 0.9980 and 1.0000 resistance levels. The pair climbed above the 1.0020 level and the 50 hourly simple moving average.
However, the bears were active near the 1.0050 level. As a result, there was a fresh decline below the 1.0000 support. There was a break below a key bullish trend line with support at 0.9990 on the hourly chart of EUR/USD.
The pair traded as low as 0.9955 and is currently consolidating losses. An immediate resistance is near the 0.9980 level. It is near the 23.6% Fib retracement level of the downward move from the 1.0050 swing high to 0.9955 low.
The next major resistance is near the 1.0030 level. It is near the 50% Fib retracement level of the downward move from the 1.0050 swing high to 0.9955 low.
A clear move above the 1.0030 resistance zone could set the pace for a larger increase towards 1.0080. The next major resistance is near the 1.0120 zone.
On the downside, an immediate support is near the 0.9955 level. The next major support is near the 0.9920 level. A downside break below the 0.9920 support could start another decline.
USD/CHF Technical Analysis
The US Dollar formed a support base near the 0.9555 and started a fresh increase against the Swiss franc. The USD/CHF pair traded above the 0.9600 level to move into a positive zone.
The pair even climbed above the 0.9620 level and the 50 hourly simple moving average. The pair climbed as high as 0.9694 and is currently correcting lower. There was a drop below the 0.9660 level.
The pair declined below the 38.2% Fib retracement level of the upward move from the 0.9556 swing low to 0.9694 high. The pair is now consolidating near 0.9640. An immediate resistance is near the 0.9650 level.
The next major resistance is near the 0.9665 level. If there is a clear break above the 0.9665 resistance zone, the pair could start another increase. In the stated case, it could test 0.9700.
On the downside, an immediate support is near the 0.9635 level. There is also a major bullish trend line forming with support near 0.9640 on the hourly chart. The 50% Fib retracement level of the upward move from the 0.9556 swing low to 0.9694 high is just below the trend line. Any more losses may possibly open the doors for a move towards the 0.9650 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.
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