EUR/USD Eyes Recovery, USD/CHF Could Break Higher

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EUR/USD started a fresh rise above the 1.1620 resistance zone. USD/CHF is eyeing an upside break above the 0.9260 resistance zone in the near term.

Important Takeaways for EUR/USD and USD/CHF

· The Euro started a fresh recovery wave above the 1.1600 zone against the US Dollar.

· There is a key bullish trend line forming with support near 1.1605 on the hourly chart of EUR/USD.

· USD/CHF started a decent increase from the 0.9185 support zone.

· There is a major bearish trend line forming with resistance near 0.9250 on the hourly chart.

EUR/USD Technical Analysis

The Euro formed a base above the 1.1530 zone against the US Dollar. As a result, the EUR/USD pair started a fresh increase above the 1.1550 and 1.1560 resistance levels.

The pair was able to clear the 1.1600 resistance and the 50 hourly simple moving average. It even spiked above 1.1650 resistance. A high was formed near 1.1669 on FXOpen and the pair is now correcting lower.

EUR/USD Hourly Chart

There was a break below the 23.6% Fib retracement level of the upward move from the 1.1572 swing low to 1.1669 high. It is now consolidating near the 1.1635 level and above the 50 hourly simple moving average. An immediate support is near the 1.1625 level.

It is near the 50% Fib retracement level of the upward move from the 1.1572 swing low to 1.1669 high. The next major support is near the 1.1605 level. There is a key bullish trend line forming with support near 1.1605 on the hourly chart of EUR/USD.

A downside break below the 1.1600 support could start another decline. The next major support sits near 1.1550. On the upside, an initial resistance is near the 1.1650 level.

The main resistance is near 1.1665. If there is an upside break above the 1.1665 resistance zone, the price could rise steadily towards the 1.1720 resistance zone.

USD/CHF Technical Analysis

The US Dollar declined below the 0.9220 support zone against the Swiss franc. The USD/CHF pair traded as low as 0.9185 before it started a fresh increase.

There was a break above the 0.9220 resistance zone, but the pair remained below the 50 hourly simple moving average. It cleared the 50% Fib retracement level of the downward move from the 0.9273 swing high to 0.9185 low.

USD/CHF Hourly Chart

An initial resistance is near the 0.9250 level. There is also a major bearish trend line forming with resistance near 0.9250 on the hourly chart.

The first key resistance is near the 0.9260 level and the 50 hourly SMA. If there is a clear break above the 0.9260 resistance zone, the pair could start a steady increase. The next major resistance is near the 0.9330. Any more gains could lift the pair towards the 0.9400 level.

On the downside, the pair might find bids near the 0.9220 level. The main support is now forming near the 0.9200 level, below which the pair could test 0.9185. Any more losses may possibly open the doors for a move towards the 0.9150 level. The next major support below 0.9150 is near the 0.9120.

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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