EUR/USD declined heavily and broke the key 1.1160 and 1.1140 support levels. USD/CHF traded towards the 0.9820 level and it is currently correcting gains.
Important Takeaways for EUR/USD and USD/CHF
- The Euro declined heavily and traded towards the 1.1060 level against the US Dollar.
- There is a key connecting bearish trend line forming with resistance near 1.1110 on the hourly chart of EUR/USD.
- USD/CHF climbed higher nicely above 0.9750 and traded close to the 0.9820 level.
- Recently, there was a break below a major bullish trend line with support near 0.9790 on the hourly chart.
EUR/USD Technical Analysis
In the past few days, the Euro declined heavily below the 1.1180 and 1.1160 support levels against the US Dollar. The EUR/USD pair even broke the 1.1140 support to enter a bearish zone.
Finally, there was a break below the 1.1080 level and the 50 hourly simple moving average. The pair traded as low as 1.1065 on FXOpen and recently started an upside correction.
There was a break above the 1.1085 level and a close above the 50 hourly simple moving average. Moreover, the pair climbed above the 38.2% Fib retracement level of the recent decline from the 1.1158 high to 1.1065 low.
However, the pair is struggling to gain strength above 1.1100 and 1.1120. There is also a key connecting bearish trend line forming with resistance near 1.1110 on the hourly chart of EUR/USD.
The 50% Fib retracement level of the recent decline from the 1.1158 high to 1.1065 low is also near the 1.1110 level to act as a strong resistance. If there is an upside break above 1.1110, the pair could correct further higher towards the 1.1130 level.
The mentioned 1.1130 level is a major hurdle, above which the pair could climb towards the 1.1160 level.
On the downside, an initial support is near the 1.1085 level and the 50 hourly SMA. If there is a downside break below the 50 hourly SMA, the pair could revisit the 1.1065 swing low. Any further decline may perhaps call for a test of the 1.1040 level.
USD/CHF Technical Analysis
The US Dollar started a decent upward move from the 0.9660 support area against the Swiss franc. The USD/CHF pair broke the 0.9700 and 0.9750 resistance levels to move into a bullish zone.
Finally, the pair climbed above the 0.9800 level and the 50 hourly simple moving average. However, the bulls struggled to clear the key 0.9820 resistance level. As a result, the pair started a downside correction and traded below the 0.9800 level.
Moreover, there was a break below a major bullish trend line with support near 0.9790 on the hourly chart. The pair traded below the 23.6% Fib retracement level of the upward move from the 0.9659 low to 0.9820 high.
However, the 0.9780 level is acting as a support. If there is a downside break below the 0.9780 and 0.9775 supports, the pair could extend its decline.
The next major support is near the 0.9740 level. It represents the 50% Fib retracement level of the upward move from the 0.9659 low to 0.9820 high.
Conversely, if there is no downside break below 0.9775, the pair could resume its rise. An immediate resistance is near the 0.9800 level, above which USD/CHF make another attempt to climb above the 0.9820 resistance level.