Market Analysis: EUR/USD Dips Further, USD/CHF Eyes More Upsides
EUR/USD extended losses and traded below the 1.0920 support. USD/CHF is rising and might aim a move toward the 0.8750 resistance.
Important Takeaways for EUR/USD and USD/CHF Analysis Today
· The Euro struggled to clear the 1.0950 resistance and declined against the US Dollar.
· There is a key bearish trend line forming with resistance at 1.0910 on the hourly chart of EUR/USD at FXOpen.
· USD/CHF is showing positive signs above the 0.8600 pivot zone.
· There is a short-term bullish flag forming with resistance at 0.8630 on the hourly chart at FXOpen.
EUR/USD Technical Analysis
On the hourly chart of EUR/USD at FXOpen, the pair failed to clear the 1.0950 resistance. The Euro started a fresh decline below the 1.0920 support against the US Dollar, as mentioned in the previous analysis.
The pair declined below the 1.0900 support and the 50-hour simple moving average. Finally, the pair tested the 1.0880 level. A low was formed at 1.0881 and the pair is now consolidating losses. The pair is showing bearish signs, and the upsides might remain capped.
Immediate resistance on the upside is near the 23.6% Fib retracement level of the downward move from the 1.0997 swing high to the 1.0881 low at 1.0910.
There is also a key bearish trend line forming with resistance at 1.0910 and the 50-hour simple moving average. The next major resistance is near the 1.0930 zone. The main resistance sits near the 61.8% Fib retracement level of the downward move from the 1.0997 swing high to the 1.0881 low at 1.0950.
An upside break above the 1.0950 level might send the pair toward the 1.0995 resistance. Any more gains might open the doors for a move toward the 1.1150 level.
On the downside, immediate support on the EUR/USD chart is seen near 1.0880. The next major support is near the 1.0850 level. A downside break below the 1.0850 support could send the pair toward the 1.0800 level.
USD/CHF Technical Analysis
On the hourly chart of USD/CHF at FXOpen, the pair started a decent increase from the 0.8550 support. The US Dollar climbed above the 0.8600 resistance zone against the Swiss Franc.
The bulls were able to pump the pair above the 50-hour simple moving average and 0.8620. Finally, the pair tested the 0.8640 zone. A high was formed near 0.8641 and the pair is still showing signs of more upsides.
On the upside, the pair is now facing resistance near 0.8630. There is also a short-term bullish flag forming with resistance at 0.8630. The next major resistance is at 0.8640.
The main resistance is now near 0.8650. If there is a clear break above the 0.8650 resistance zone and the RSI remains above 50, the pair could start another increase. In the stated case, it could test 0.8750.
If there is a downside correction, the pair might test the 0.8600 level. The first major support on the USD/CHF chart is near the 0.8610 level. The next key support is near the 50% Fib retracement level of the upward move from the 0.8555 swing low to the 0.8641 high at 0.8585.
A downside break below 0.8585 might spark bearish moves. The next major support is near the 0.8555 pivot level. Any more losses may possibly open the doors for a move toward the 0.8500 level in the near term.
Read more: https://fxopen.com/blog/en/aj-market-analysis-eur-usd-dips-further-usd-chf-eyes-more-upsides/
Text source: Forex Trading Blog
