EUR/USD Testing Key Support, USD/CHF Gaining Momentum

Aayush Jindal -

EUR/USD is declining and it is now trading below the 1.1780 support zone. USD/CHF is rising and it seems like the pair could gain momentum above the 0.9200 resistance.

Important Takeaways for EUR/USD and USD/CHF

  • The Euro started a fresh decline below the 1.1840 and 1.1800 support levels against the US Dollar.
  • There is a key bearish trend line forming with resistance near 1.1760 on the hourly chart of EUR/USD.
  • USD/CHF gained bullish momentum above the 0.9150 and 0.9160 resistance levels.
  • There was a break above a major bearish trend line with resistance near 0.9165 on the hourly chart.

EUR/USD Technical Analysis

After a steady rise, the Euro failed to continue higher above 1.1920 against the US Dollar. The EUR/USD pair topped near the 1.1920 level and recently started a fresh decline.

There was a break below the 1.1850 and 1.1840 support levels. The pair even broke the 1.1780 support zone and the 50 hourly simple moving average. It is now trading below the 1.1740 support and traded as low as 1.1716 on FXOpen.

If there is an upside correction, the pair could face hurdles near the 1.1740 level. It is close to the 23.6% Fib retracement level of the recent decline from the 1.1807 high to 1.1716 low.

The main resistance is forming near the 1.1760 level. There is also a key bearish trend line forming with resistance near 1.1760 on the hourly chart of EUR/USD. The trend line is close to the 50 hourly SMA, and the 50% Fib retracement level of the recent decline from the 1.1807 high to 1.1716 low.

If the pair breaks the trend line resistance, the pair could continue to rise towards the 1.1780 and 1.1800 resistance levels. The next major hurdle is near the 1.1840 level.

Conversely, the pair could start a strong decline below the 1.1710 and 1.1700 support levels. On the downside, the next major support is seen near the 1.1650 level.

USD/CHF Technical Analysis

The US Dollar formed a decent support base near the 0.9050 level and started a fresh increase against the Swiss franc. The USD/CHF pair broke the 0.9100 resistance to move into a positive zone.

The pair even broke the key 0.9150 resistance zone and it settled above the 50 hourly simple moving average. Moreover, there was a break above a major bearish trend line with resistance near 0.9165 on the hourly chart.

The pair traded as high as 0.9194 and it is now approaching the 0.9200 resistance. If there is a downside correction, the pair could find bids near the 0.9175 level. It is close to the 23.6% Fib retracement level of the recent wave from the 0.9105 low to 0.9194 high.

The main support is now forming near the 0.9150 level and the 50 hourly simple moving average. The 50% Fib retracement level of the recent wave from the 0.9105 low to 0.9194 high is also near the 0.9150 support zone.

On the upside, the pair could start another sharp upward move if it clears the 0.9200 resistance zone. The next key hurdle for the bulls is seen near the 0.9240 level. Any further gains could open the doors for a push towards the 0.9280 level.