Key Highlights
- USD/CHF gained bearish momentum after it settled below 0.7950.
- A major bearish trend line is forming with resistance at 0.7925 on the 4-hour chart.
- EUR/USD rallied further above 1.1800 and 1.1850 before correcting some gains.
- Gold started a consolidation phase from the $3,700 zone.
USD/CHF Technical Analysis
The US Dollar started a major decline from well above 0.8000 against the Swiss Franc. USD/JPY declined heavily below 0.7950 and 0.7920.
Looking at the 4-hour chart, the pair settled below the 0.7920 pivot level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even spiked below 0.7850.
On the downside, immediate support is 0.7850. The next key area of interest might be near the 0.7820 zone. The main support could be 0.7780. Any more losses might increase selling pressure and send USD/CHF toward 0.7650.
On the upside, the pair could face resistance near the 0.7895 level. The first major hurdle for the bulls could be 0.7925. There is also a major bearish trend line forming with resistance at 0.7925 on the same chart.
A close above 0.7925 could set the pace for a steady recovery wave. In the stated case, the pair could rise toward 0.7950, above which the bulls could aim for a move toward 0.8000. Any more upsides could send the pair toward 0.8040.
Looking at EUR/USD, the bulls remained in action, and they were able to push the price above the 1.1850 resistance zone.
Upcoming Key Economic Events:
- BoE Interest Rate Decision – Forecast 4%, versus 4% previous.
- US Initial Jobless Claims – Forecast 240K, versus 263K previous.
