EUR/USD formed support near the 1.1250 level and later bounced back above 1.1320. USD/CHF started a major decline and broke the 1.0040 and 1.0020 support levels.
Important Takeaways for EUR/USD and USD/CHF
- The Euro formed a solid support near the 1.1250 level and rebounded against the US Dollar.
- There was a break above a major bearish trend line with resistance near 1.1330 on the hourly chart of EUR/USD.
- USD/CHF started a downside move and traded below the 1.0060 support.
- There is a major bearish trend line formed with resistance at 1.0045 on the hourly chart.
EUR/USD Technical Analysis
After a major decline, the Euro found support near the 1.1250 level against the US Dollar. The EUR/USD pair formed a solid support base near 1.1250 and later started a decent rebound.
The pair traded above the 1.1275 and 1.1300 resistance levels before correction lower. A new swing low was formed at 1.1275 on FXOpen before the pair started a fresh upward move. It broke the 1.1320 resistance and the 50 hourly simple moving average.
During the rise, there was a break above a major bearish trend line with resistance near 1.1330 on the hourly chart of EUR/USD. The pair even traded above the 1.1350 level and formed a high at 1.1357.
At the moment, the pair is correcting lower towards the 23.6% Fib retracement level of the last wave from the 1.1275 low to 1.1357 high. On the downside, there are many supports near the 1.1320 level and the broken trend line.
The main support is near the 1.1315 level and the 50 hourly simple moving average. It coincides with the 50% Fib retracement level of the last wave from the 1.1275 low to 1.1357 high.
Therefore, if the pair corrects lower, there are chances of a strong buying interest near the 1.1320 and 1.1315 levels. On the upside, the 1.1350 and 1.1360 levels are crucial hurdles for buyers. If there is a proper break above 1.1360, the pair could trade towards the 1.1400 level in the near term.
USD/CHF Technical Analysis
The US Dollar faced a strong selling interest near the 1.0090 and 1.0100 levels against the Swiss franc. The USD/CHF pair topped near the 1.0090 level and later started a major downside move.
The pair broke the 1.0060 and 1.0040 support levels to enter a bearish zone. Sellers even pushed the pair below the 1.0020 support and the 50 hourly simple moving average. A low was formed at 1.0002 and the pair is currently correcting higher.
It is testing the 23.6% Fib retracement level of the last decline from the 1.0060 high to 1.0002 low. However, the main resistance is near the 1.0035 and the 50 hourly simple moving average.
There is also a major bearish trend line formed with resistance at 1.0045 on the hourly chart. Below the trend line, the 50% Fib retracement level of the last decline from the 1.0060 high to 1.0002 low is at 1.0031.
Therefore, if the pair corrects higher, it could face a strong selling interest near the 1.0030 and 1.0040 levels. Once the current correction wave is complete, there are chances of a fresh decline below the 1.0010 and 1.0000 support levels in the near term.
