Market Analysis: EUR/USD Strengthens While USD/CHF Faces Hurdles
EUR/USD started a fresh increase above the 1.1050 resistance. USD/CHF declined and now struggling below the 0.8500 resistance.
Important Takeaways for EUR/USD and USD/CHF Analysis Today
· The Euro surged after it broke the 1.1050 resistance against the US Dollar.
· There is a connecting bullish trend line forming with support near 1.1125 on the hourly chart of EUR/USD at FXOpen.
· USD/CHF declined below the 0.8500 and 0.8460 support levels.
· There is a major bearish trend line forming with resistance near 0.8460 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 1.1000 zone. The Euro cleared the 1.1050 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 1.1100. Finally, the pair tested the 1.1145 resistance. A high was formed near 1.1146 and the pair is now consolidating gains above the 23.6% Fib retracement level of the upward wave from the 1.1001 swing low to the 1.1146 high.
Immediate support on the downside is near a connecting bullish trend line at 1.1125. The next major support is the 1.1110 level. A downside break below the 1.1110 support could send the pair toward the 1.1075 level.
The 50% Fib retracement level of the upward wave from the 1.1001 swing low to the 1.1146 high is also at 1.1075. Any more losses might send the pair into a bearish zone toward 1.1050.
Immediate resistance on the EUR/USD chart is near the 1.1145 zone. The first major resistance is near the 1.1165 level. An upside break above the 1.1165 level might send the pair toward the 1.1200 resistance.
The next major resistance is near the 1.1250 level. Any more gains might open the doors for a move toward the 1.1285 level.
USD/CHF Technical Analysis
On the hourly chart of USD/CHF at FXOpen, the pair started a fresh decline from well above the 0.8520 zone. The US Dollar dropped below the 0.8490 support to move into a negative zone against the Swiss Franc.
The bears pushed the pair below the 50-hour simple moving average and 0.8475. Finally, the bulls appeared near the 0.8430 level. A low was formed near 0.8429 and the pair is now consolidating losses.
There was a minor increase above the 23.6% Fib retracement level of the downward move from the 0.8549 swing high to the 0.8429 low. However, the pair struggled to stay above 0.8460. On the upside, the pair could face resistance near the 0.8460 level and a major bearish trend line.
The next major resistance is near the 0.8475 level, above which the pair could test the 50% Fib retracement level of the downward move from the 0.8549 swing high to the 0.8429 low at 0.8490.
If there is a clear break above the 0.8490 resistance zone, the pair could start another increase. In the stated case, it could even surpass 0.8550.
On the downside, immediate support on the USD/CHF chart is 0.8430. The first major support is near the 0.8400 level. The next major support is near 0.8380. Any more losses may possibly open the doors for a move toward the 0.8350 level in the coming days.
Read more: https://fxopen.com/blog/en/aj-market-analysis-eur-usd-strengthens-while-usd-chf-faces-hurdles/
Text source: Forex Trading Blog
