Market Analysis: EUR/USD Rallies While USD/CHF Dips Further
EUR/USD started a fresh increase above the 1.0550 resistance. USD/CHF declined and now struggling below the 0.8950 resistance.
Important Takeaways for EUR/USD and USD/CHF Analysis Today
· The Euro started a decent recovery wave from the 1.0360 zone against the US Dollar.
· There is a connecting bullish trend line forming with support near 1.0570 on the hourly chart of EUR/USD at FXOpen.
· USD/CHF declined below the 0.8975 and 0.8950 support levels.
· There is a short-term contracting triangle forming with resistance near 0.8910 on the hourly chart at FXOpen.
EUR/USD Technical Analysis
On the hourly chart of EUR/USD at FXOpen, the pair started a fresh increase from the 1.0360 zone. The Euro cleared the 1.0450 resistance to move into a bullish zone against the US Dollar, as mentioned in the last analysis.
The bulls pushed the pair above the 50-hour simple moving average and 1.0550. Finally, the pair tested the 1.0635 resistance. A high was formed near 1.0637 and the pair is now consolidating gains above the 23.6% Fib retracement level of the upward wave from the 1.0359 swing low to the 1.0637 high.
Immediate support on the downside is near a connecting bullish trend line at 1.0570. The next major support is the 1.0500 level and the 50% Fib retracement level of the upward wave from the 1.0359 swing low to the 1.0637 high.
A downside break below the 1.0500 support could send the pair toward the 1.0465 level. Any more losses might send the pair into a bearish zone toward 1.0425.
Immediate resistance on the EUR/USD chart is near the 1.0635 zone. The first major resistance is near the 1.0665 level. An upside break above the 1.0665 level might send the pair toward the 1.0720 resistance.
The next major resistance is near the 1.0750 level. Any more gains might open the doors for a move toward the 1.0800 level.
USD/CHF Technical Analysis
On the hourly chart of USD/CHF at FXOpen, the pair started a fresh decline from well above the 0.9000 zone. The US Dollar dropped below the 0.8975 support to move into a negative zone against the Swiss Franc.
The bears pushed the pair below the 50-hour simple moving average and 0.8920. Finally, the bulls appeared near the 0.8870 level. A low was formed near 0.8871 and the pair is now consolidating losses.
There was a minor increase and the pair tested the 23.6% Fib retracement level of the downward move from the 0.9036 swing high to the 0.8871 low. On the upside, the pair could face resistance near the 0.8910 level.
There is also a short-term contracting triangle forming with resistance near 0.8910. The next major resistance is near the 50% Fib retracement level of the downward move from the 0.9036 swing high to the 0.8871 low at 0.8950, above which the pair could test the 0.8975 level.
If there is a clear break above the 0.8975 resistance zone, the pair could start another increase. In the stated case, it could even surpass 0.9000.
On the downside, immediate support on the USD/CHF chart is 0.8900. The first major support is near the 0.8870 level. The next major support is near 0.8850. Any more losses may possibly open the doors for a move toward the 0.8820 level in the coming days.
Read more: https://fxopen.com/blog/en/aj-market-analysis-eur-usd-rallies-while-usd-chf-dips-further/
Text source: Forex Trading Blog
