EUR/USD failed to hold a few key supports and declined below the 1.1140 zone. Conversely, USD/CHF is trading in a positive zone and it remains well supported above 0.9550.
Important Takeaways for EUR/USD and USD/CHF
- The Euro started a fresh decline and traded below the 1.1100 support against the US Dollar.
- There is a key bearish trend line forming with resistance near 1.1095 on the hourly chart of EUR/USD.
- USD/CHF is trading in an uptrend and it recently tested the 0.9650 resistance area.
- There is a major bullish trend line forming with support near 0.9515 on the hourly chart.
EUR/USD Technical Analysis
This week, the Euro extended its decline after it broke the key 1.1200 support area against the US Dollar. The EUR/USD pair broke a few important supports near the 1.1140 level to enter a bearish zone.
Moreover, there was a close below the 1.1100 support and the 50 hourly simple moving average. The pair extended its decline below the 1.1040 and traded as low as 1.0953 on FXOpen.
The pair is currently correcting higher and trading above the 1.1000 level. There was a break above the 23.6% Fib retracement level of the recent decline from the 1.1188 high to 1.0953 low.
On the upside, an initial resistance is near the 1.1070 level. It coincides with the 50% Fib retracement level of the recent decline from the 1.1188 high to 1.0953 low. Moreover, there is a key bearish trend line forming with resistance near 1.1095 on the hourly chart of EUR/USD.
If there is an upside break above the 1.1070 and 1.1100 resistance levels, the pair could start a strong upward move. The next key resistance is near the 1.1180 and 1.1200 levels.
Conversely, the pair could struggle to rise above the 1.1040 and 1.1070 resistance levels. In the mentioned case, there is a risk of more losses in the near term below the 1.1000 support level. The next key support is near the 1.0950 level.
USD/CHF Technical Analysis
The US Dollar remained in a positive zone above the 0.9350 and 0.9400 pivot levels against the Swiss franc. The USD/CHF pair even gained pace above the 0.9500 resistance level to start the uptrend.
The upward move was such that the pair surpassed the 0.9580 resistance and settled nicely above the 50 hourly simple moving average. Finally, there was a break above the 0.9600 level and the pair traded as high as 0.9647.
It is currently correcting lower and trading below the 0.9600 level. There was a break below the 23.6% Fib retracement level of the recent wave from the 0.9391 low to 0.9647 high.
On the downside, an initial support is near the 0.9550 level. The first key support area is seen near the 0.9520 level and the 50 hourly simple moving average. Besides, the 50% Fib retracement level of the recent wave from the 0.9391 low to 0.9647 high is near the 0.9519 level.
Moreover, there is a major bullish trend line forming with support near 0.9515 on the hourly chart. Therefore, dips remain well supported on the downside near the 0.9520 and 0.9500 levels.
On the upside, an initial resistance is near the 0.9620 and 0.9650 levels, above which USD/CHF could rise towards the 0.9720 level.