EUR/USD Tumbles and USD/CHF Approaching Key Resistance

FXOpen

EUR/USD declined heavily and broke the 1.1400 and 1.1350 supports. On the other hand, USD/CHF moved higher and is currently approaching an important resistance near 0.9980.

Important Takeaways for EUR/USD and USD/CHF

  • The Euro tumbled and settled below the 1.1450 pivot level against the US Dollar.
  • A crucial bearish trend line is in place with resistance at 1.1370 on the hourly chart of EUR/USD.
  • USD/CHF settled above the 0.9940 resistance and the 50 hourly simple moving average.
  • There is a significant resistance and a bearish trend line at 0.9980 on the hourly chart.

EUR/USD Technical Analysis

The Euro started a significant downtrend from well above the 1.1600 level against the US Dollar. The EUR/USD pair tumbled and broke many important supports like 1.1540, 1.1500, 1.1450 and 1.1400.

The pair settled below the 1.1450 pivot level and the 50 hourly simple moving average, opening the doors for more losses. An intermediate low was formed at 1.1370 from where the pair corrected higher.

EUR/USD Technical Analysis Euro Dollar Chart

However, the upside move was capped by the 1.1430-40 zone and a crucial bearish trend line with current resistance at 1.1370 on the hourly chart of EUR/USD. The pair failed and started a fresh downside move below 1.1400.

It declined and broke the last swing low at 1.1370. It even broke the 1.1350 level and recently traded to a new monthly low at 1.1319. It is currently consolidating losses with an initial resistance near the 23.6% Fib retracement level of the last slide from the 1.1429 high to 1.1319 low.

On the upside, there are many resistances near the 1.1360-70 zone. Moreover, the 50% Fib retracement level of the last slide from the 1.1429 high to 1.1319 low is placed near 1.1375 along with the 50 hourly SMA.

Therefore, if the pair corrects higher, it is likely to face sellers near the 1.1360, 1.1375 and 1.1380 resistance levels. Above this last, the pair could face a crucial barrier at 1.1400.

On the downside, the 1.1320 level is a short-term support, below which, the pair may perhaps trade below the 1.1300 level in the near term.

USD/CHF Technical Analysis

The US Dollar formed a decent support near the 0.9900 level against the Swiss franc. The USD/CHF pair started an upward move and traded above the 0.9920 and 0.9940 resistance levels.

The pair even settled above the 0.9950 level and the 50 hourly SMA. During the upside move, the pair broke the last swing high at 0.9944 and a connecting bearish trend line with resistance at 0.9942 on the hourly chart.

USD/CHF Technical Analysis US Dollar Swiss Franc

Buyers even pushed the pair above the 1.236 fib extension level of the last decline from the 0.9944 high to 0.9901 low. However, there is a crucial resistance waiting on the upside near the 0.9980 level.

A major bearish trend line and the 0.9971 swing high could prevent gains. Moreover, the 1.618 fib extension level of the last decline from the 0.9944 high to 0.9901 low is also near 0.9970.

Therefore, it won’t be easy for USD/CHF buyers to clear the 0.9970 and 0.9980 resistances. If they succeed, the pair will most likely attempt a break above the 1.0000 handle in the near term.

On the flip side, a downside correction could lead the pair towards the 0.9940 support zone, which was a resistance earlier and it might now act as a buy zone.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments EUR/USD, GBP/USD, and USD/JPY Analysis: US Dollar Growing Against Euro and Pound Market Analysis: The USD/CAD Rate Drops to Its Minimum of 2 Months Market Analysis: AUD/USD Trims Gains While NZD/USD Extends Increase European Currencies at Strategic Levels

Latest articles

Shares

5 Stocks To Consider in December 2023

As we approach the curtain call for 2023, it's time to reflect on a year filled with market-shaping events. From the resurrection of tech stocks to the fall of financial institutions, the capital markets sector has been anything but dull.

Cryptocurrencies

Market Analysis: Bitcoin Surpasses $40,000 Per Coin

December begins extremely optimistically for the cryptocurrency market, resembling: → December 2020, when bitcoin grew by 46.9%; → December 2017, when bitcoin grew by 38.9%; → December 2016, when bitcoin grew by 30.8%. If there are psychological patterns in the

Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments

Today, investors are assessing the speech of US Federal Reserve Chairman Jerome Powell, who indicated that the interest rate is currently at a restrictive level, but the regulator allows for the possibility of another increase if necessary. The manufacturing business

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.