Market Analysis: EUR/USD Dips Further While USD/CHF Turns Green
EUR/USD extended losses and traded below the 1.0775 support. USD/CHF is rising and might aim a move toward the 0.8850 resistance.
Important Takeaways for EUR/USD and USD/CHF Analysis Today
· The Euro struggled to clear the 1.0935 resistance and declined against the US Dollar.
· There is a key bearish trend line forming with resistance at 1.0680 on the hourly chart of EUR/USD at FXOpen.
· USD/CHF is showing positive signs above the 0.8745 pivot zone.
· There was a break above a short-term bullish continuation pattern with resistance at 0.8770 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 1.0935 resistance. The Euro started a fresh decline below the 1.0825 support against the US Dollar, as mentioned in the previous analysis.
The pair declined below the 1.0775 support and the 50-hour simple moving average. Finally, the pair tested the 1.0630 level. A low was formed at 1.0628 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 1.0825 swing high to the 1.0628 low at 1.0680.
There is also a key bearish trend line forming with resistance at 1.0680 and the 50-hour simple moving average. The next major resistance is near the 1.0725 zone. The main resistance sits near the 76.4% Fib retracement level of the downward move from the 1.0825 swing high to the 1.0628 low at 1.0775.
An upside break above the 1.0775 level might send the pair toward the 1.0825 resistance. Any more gains might open the doors for a move toward the 1.0935 level.
On the downside, immediate support on the EUR/USD chart is seen near 1.0630. The next major support is near the 1.0600 level. A downside break below the 1.0600 support could send the pair toward the 1.0565 level.
USD/CHF Technical Analysis
On the hourly chart of USD/CHF at FXOpen, the pair started a decent increase from the 0.8615 support. The US Dollar climbed above the 0.8700 resistance zone against the Swiss Franc.
There was a break above a short-term bullish continuation pattern with resistance at 0.8770. The bulls were able to pump the pair above the 50-hour simple moving average and 0.8770. Finally, the pair tested the 0.8815 zone.
A high was formed near 0.8817 and the pair is still showing signs of more upsides. On the upside, the pair is now facing resistance near 0.8820.
The main resistance is now near 0.8840. If there is a clear break above the 0.8840 resistance zone and the RSI remains above 50, the pair could start another increase. In the stated case, it could test 0.8920.
If there is a downside correction, the pair might test the 0.8790 level or the 23.6% Fib retracement level of the upward move from the 0.8701 swing low to the 0.8817 high.
The first major support on the USD/CHF chart is near the 0.8770 level. The next key support is near the 61.8% Fib retracement level of the upward move from the 0.8701 swing low to the 0.8817 high at 0.8745.
A downside break below 0.8745 might spark bearish moves. The next major support is near the 0.8700 pivot level. Any more losses may possibly open the doors for a move toward the 0.8615 level in the near term.
Read more: https://fxopen.com/blog/en/aj-market-analysis-eur-usd-dips-further-while-usd-chf-turns-green/
Text source: Forex Trading Blog
