EUR/USD failed to hold gains above the 1.1350 level and declined below 1.1320. USD/CHF surged higher and broke the key 1.0020 resistance level to move into an uptrend.
Important Takeaways for EUR/USD and USD/CHF
- The Euro topped above the 1.1400 pivot level and declined heavily against the US Dollar.
- Recently, there was a break below a contracting triangle with support at 1.1320 on the hourly chart of EUR/USD.
- USD/CHF broke the key 1.0015 and 1.0020 resistance levels to set the pace for more gains.
- There is a major bullish trend line formed with support at 1.0020 on the hourly chart.
EUR/USD Technical Analysis
After spiking above the 1.1400 resistance level, the Euro faced a strong selling interest against the US Dollar. The EUR/USD pair started a fresh decline and broke the 1.1380 and 1.1350 support levels.
The decline was strong as the pair even broke the 1.1320 support level and the 50 hourly simple moving average. Before the drop, there was a consolidation pattern formed above the 1.1320 support level. However, buyers failed to protect more losses and the price extended declines below 1.1300.
There was a break below a contracting triangle with support at 1.1320 on the hourly chart of EUR/USD. The pair gained pace below 1.1300 and traded as low as 1.1289 on FXOpen.
Later, there was a minor upside correction and the pair moved above the 1.1300 level and the 23.6% Fib retracement level of the last decline from the 1.1338 high to 1.1289 low. However, the pair struggled to break the 1.1308 level.
It seems like the 38.2% Fib retracement level of the last decline from the 1.1338 high to 1.1289 low acted as a resistance. On the upside, there is a strong resistance formed near the 1.1325 and the 50 hourly simple moving average.
Therefore, if the pair corrects higher, it is likely to face sellers near the 1.1310 and 1.1325 resistance levels. On the downside, a break below the 1.1289 low could push the pair towards the 1.1280 and 1.1260 support levels in the near term.
USD/CHF Technical Analysis
The US Dollar formed a solid support above the 0.9960 level and later climbed higher against the Swiss franc. The USD/CHF pair broke the 0.9980 and 0.9990 resistance levels to move into a positive zone.
The upward move was strong as there was a break above the key 1.0015 and 1.0020 resistance levels. There was even a close above the 1.0020 level and the 50 hourly simple moving average. The pair recently broke the 1.0040 level and traded as high as 1.0054 before correcting lower.
It traded below the 1.0040 level and the 23.6% Fib retracement level of the last wave from the 0.9996 low to 1.0054 high.
However, the decline was protected by the 1.0035 level and the 38.2% Fib retracement level of the last wave from the 0.9996 low to 1.0054 high. To the downside, there is a major bullish trend line formed with support at 1.0020 on the hourly chart.
The trend line is close to the previous resistance at 1.0020. Therefore, if there is a downside correction, the 1.0020 level is likely to act as a strong support.
On the upside, an initial resistance is near 1.0055, above which USD/CHF could accelerate towards the 1.0080 level in the coming sessions.