EUR/USD gained pace above the 1.0600 resistance zone. USD/CHF is declining and remains at a risk of more losses below the 0.9240 support.
Important Takeaways for EUR/USD and USD/CHF
· The Euro started a fresh increase above the 1.0550 resistance against the US Dollar.
· There was a break above a major contracting triangle with resistance near 1.0565 on the hourly chart of EUR/USD.
· USD/CHF started a fresh decline below the 0.9350 and 0.9315 support levels.
· There is a key bearish trend line forming with resistance near 0.9360 on the hourly chart.
EUR/USD Technical Analysis
This week, the Euro started a steady increase from the 1.0450 zone against the US Dollar. The EUR/USD pair gained pace above the 1.0500 level to move into a bullish zone.
The pair even climbed above the 1.0600 resistance and settled above the 50 hourly simple moving average. During the increase, there was a break above a major contracting triangle with resistance near 1.0565 on the hourly chart of EUR/USD.
It traded as high as 1.0672 on FXOpen and recently started a downside correction. There was a move below the 1.0650 level. The pair tested the 38.2% Fib retracement level of the upward move from the 1.0528 swing low to 1.0672 high.
On the downside, an immediate support is near the 1.0600 level. The 50% Fib retracement level of the upward move from the 1.0528 swing low to 1.0672 high is also near the 1.0600 zone.
The next major support is near the 1.0565 level. A downside break below the 1.0565 support could start another decline.
An immediate resistance is near the 1.0640 level. The next major resistance is near the 1.0675 level. A clear move above the 1.0675 resistance zone could set the pace for a larger increase towards 1.0750. The next major resistance is near the 1.0800 zone.
USD/CHF Technical Analysis
The US Dollar started a fresh decline from well above the 0.9400 level against the Swiss franc. The USD/CHF pair traded below the 0.9350 support to move into a bearish zone.
There was a clear move below the 0.9315 support and the 50 hourly simple moving average. The pair traded as low as 0.9231 and recently started an upside correction. There was a move above the 0.9280 level.
The pair surpassed the 38.2% Fib retracement level of the recent decline from the 0.9375 swing high to 0.9231 low. An immediate resistance is near the 0.9305 level.
The 50% Fib retracement level of the recent decline from the 0.9375 swing high to 0.9231 low is also near the 0.9305 level. The next major resistance is near the 0.9350 level.
There is also a key bearish trend line forming with resistance near 0.9360 on the hourly chart. If there is a clear break above the 0.9360 resistance zone, the pair could start another increase. In the stated case, it could test 0.9700.
On the downside, an immediate support is near the 0.9265 level. The next major support is near the 0.9240 level. Any more losses may possibly open the doors for a move towards the 0.9220 level or even 0.9200 in the coming sessions.
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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