EUR/USD is eyeing a fresh increase above the 1.0320 resistance zone. USD/CHF is correcting gains and might test the 0.9475 support zone.
Important Takeaways for EUR/USD and USD/CHF
· The Euro started a fresh decline and tested the 1.0220 support against the US Dollar.
· There is a major bearish trend line forming with resistance near 1.0315 on the hourly chart of EUR/USD.
· USD/CHF started a fresh increase after it was able to clear the 0.9500 resistance.
· There was a break below a key bullish trend line with support near 0.9540 on the hourly chart.
EUR/USD Technical Analysis
This week, the Euro started a downside correction from the 1.0400 zone against the US Dollar. The EUR/USD pair declined below the 1.0320 support level to move into a short-term bearish zone.
The pair even tested the 1.0220 support zone. It traded as low as 1.0222 on FXOpen and recently started a decent increase. There was a move above the 1.0275 level and the 50 hourly simple moving average. The pair even cleared the 50% Fib retracement level of the downward move from the 1.0395 swing high to 1.0222 low.
An immediate resistance is near the 1.0320 level. There is also a major bearish trend line forming with resistance near 1.0315 on the hourly chart of EUR/USD.
The 61.8% Fib retracement level of the downward move from the 1.0395 swing high to 1.0222 low is also near 1.0329 to act as resistance. The next major resistance is near the 1.0350 level. A clear move above the 1.0350 resistance zone could set the pace for a larger increase towards 1.0400.
The next major resistance is near the 1.0500 zone. On the downside, an immediate support is near the 1.0280 level. The next major support is near the 1.0265 level. A downside break below the 1.0265 support could start another decline.
USD/CHF Technical Analysis
The US Dollar formed a support base near the 0.9350 and started a fresh increase against the Swiss franc. The USD/CHF pair traded above the 0.9500 level to move into a positive zone.
The pair even climbed above the 0.9550 level and the 50 hourly simple moving average. The pair climbed as high as 0.9599 before there was a downside correction. There was a move below the 0.9550 level and the 50 hourly simple moving average.
Besides, there was a break below a key bullish trend line with support near 0.9540 on the hourly chart. There was a move below the 23.6% Fib retracement level of the upward move from the 0.9356 swing low to 0.9599 high.
On the downside, an immediate support is near the 0.9475 level. It is near the 50% was a break below a key bullish trend line with support near 0.9540 on the hourly chart.
Any more losses may possibly open the doors for a move towards the 0.9420 level. If not, the pair might rise again. An immediate resistance is near the 0.9550 level. The next major resistance is near the 0.9600 level.
If there is a clear break above the 0.9600 resistance zone, the pair could start another increase. In the stated case, it could test 0.9680.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
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