EUR/USD started a decent increase and it broke the 1.1850 resistance zone. USD/CHF is declining and it could extend losses below 0.9020.
Important Takeaways for EUR/USD and USD/CHF
- The Euro started a fresh increase from well below 1.1800 against the US Dollar.
- There is a key bullish trend line forming with support near 1.1840 on the hourly chart of EUR/USD.
- USD/CHF failed to stay above the 0.9120 support and extended its decline.
- There is a major bearish trend line forming with resistance near 0.9070 on the hourly chart.
EUR/USD Technical Analysis
The Euro formed a support base above 1.1780 and started a fresh increase against the US Dollar. The EUR/USD pair broke the 1.1820 resistance zone to move into a positive zone.
The pair even surpassed the 1.1850 resistance zone and it settled above the 50 hourly simple moving average. Finally, there was a spike above the 1.1900 level. A high was formed near 1.1908 on FXOpen before the pair started a downside correction.
There was a break below the 1.1900 and 1.1880 levels. The pair declined below the 23.6% Fib retracement level of the upward move from the 1.1772 swing low to 1.1908 high.
It is now consolidating above the 1.1850 support zone. The next major support is near the 1.1840 level. It is near the 50% Fib retracement level of the upward move from the 1.1772 swing low to 1.1908 high. There is also a key bullish trend line forming with support near 1.1840 on the hourly chart of EUR/USD.
A downside break below the 1.1840 support could start another decline. The next major support could be near the 1.1780 level.
On the upside, an initial resistance is near the 1.1875 level and the 50 hourly simple moving average. The main resistance is near 1.1900. If there is an upside break above the 1.1900 resistance zone, the price could rise steadily towards the 1.1950 resistance zone.
USD/CHF Technical Analysis
The US Dollar started a major decline from well above the 0.9200 zone against the Swiss franc. As a result, the USD/CHF pair broke the 0.9150 support to move into a bearish zone.
The pair even broke the 0.9120 support and the 50 hourly simple moving average. Finally, there was a spike below 0.9050 and the pair traded as low as 0.9022. It is now consolidating losses above the 0.9020 level.
An initial resistance is near the 0.9045 level and the 50 hourly simple moving average. The first key resistance is near the 0.9055 level. It is close to the 23.6% Fib retracement level of the main decline from the 0.9167 swing high to 0.9022 low.
There is also a major bearish trend line forming with resistance near 0.9070 on the hourly chart. The next key resistance could be 0.9100 or the 50% Fib retracement level of the main decline from the 0.9167 swing high to 0.9022 low.
If there is a clear break above the 0.9100 resistance zone, the pair could start a steady increase. The next major resistance is near the 0.9150. Any more gains could lead the pair towards 0.9320.
On the downside, the pair might find bids near the 0.9020 level. Any more losses could might increase the chances of a break below the 0.9000 support. In the stated case, the pair may even decline below the 0.8965 support zone.
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.