EUR/USD declined to a new multi-month low at 1.0926 and is currently correcting higher. USD/CHF is currently correcting gains, but it is approaching a few key supports near 0.9840.
Important Takeaways for EUR/USD and USD/CHF
- The Euro is correcting higher after trading to a new multi-month low at 1.0926 against the US Dollar.
- There is a major bearish trend line forming with resistance near 1.0985 on the hourly chart of EUR/USD.
- USD/CHF started a downside correction after trading as high as 0.9928.
- There was a break below a key bullish trend line with support near 0.9890 on the hourly chart.
EUR/USD Technical Analysis
In the past few weeks, the Euro remained in a bearish zone and declined steadily below the 1.1100 support against the US Dollar. The EUR/USD pair even broke the 1.1000 support to move further into a bearish zone.
The recent decline was such that the pair traded to a new multi-month low at 1.0926 on FXOpen. It is currently correcting higher and is trading above the 1.0950 level.
There was a break above the 23.6% Fib retracement level of the last drop from the 1.1049 high to 1.0926 low. At the moment, the pair is trading above the 1.0960 level and the 50 hourly simple moving average.
However, there are many hurdles on the upside for the bulls near the 1.0980 and 1.0990 levels. Moreover, there is a major bearish trend line forming with resistance near 1.0985 on the hourly chart of EUR/USD.
The trend line also coincides with the 50% Fib retracement level of the last drop from the 1.1049 high to 1.0926 low. If there is an upside break above the trend line and 1.1000, the pair could start a decent recovery in the near term.
On the downside, an initial support is near the 1.0950 level and the 50 hourly SMA. If EUR/USD fails to stay above the 1.0950 support, there are chances of more downsides towards 1.0925 and 1.0900 in the near term.
USD/CHF Technical Analysis
The US Dollar followed a nice bullish path from the 0.9740 support area against the Swiss franc. The USD/CHF pair broke the 0.9780 and 0.9800 resistance levels to move into a bullish zone.
Later, it gained strength above the 0.9850 and 0.9880 levels. Moreover, there was a break above the 0.9900 level and the 50 hourly simple moving average. It traded as high as 0.9928 and recently started a downside correction.
There was a break below the 0.9900 support and the 50 hourly simple moving average. Moreover, the pair traded below a key bullish trend line with support near 0.9890 on the hourly chart.
It is now trading near the 0.9860 support level and the 50% Fib retracement level of the upward move from the 0.9801 low to 0.9928 high. On the downside, there are many supports near the 0.9840 and 0.9820 levels.
Additionally, the 61.8% Fib retracement level of the upward move from the 0.9801 low to 0.9928 high is also near the 0.9849 to act as a support. Therefore, as long as the pair is trading above 0.9840, it is likely to bounce back.
On the upside, the key resistance is near the 0.9900 level and the 50 hourly SMA. A successful close above 0.9900 might push USD/CHF towards the 0.9940 and 0.9950 levels.
