EUR/USD started a strong recovery after testing the 1.1115 support area. USD/CHF is currently correcting lower and it could extend losses towards 1.0160 or 1.0140.
Important Takeaways for EUR/USD and USD/CHF
- The Euro found support above 1.1100 and recently recovered higher against the US Dollar.
- There is a connecting bullish trend line forming with support at 1.1210 on the hourly chart of EUR/USD.
- USD/CHF struggled to clear the 1.0225 resistance area and recently corrected lower.
- There is a major bearish trend line formed with resistance near 1.0200 on the hourly chart.
EUR/USD Technical Analysis
The Euro declined heavily this past week below the 1.1200 and 1.1150 support levels against the US Dollar. The EUR/USD pair traded towards the 1.1100 level and formed a new swing low at 1.1111 on FXOpen.
The pair formed a decent support base above the 1.1100 level and recently recovered higher. It climbed above the 1.1150 resistance level and settled above the 50 hourly simple moving average.
Besides, there was a break above the 61.8% Fib retracement level of the last decline from the 1.1261 high to 1.1111 low. The pair is now trading nicely above the 1.1200 support level, with a positive angle.
At the moment, the price is facing hurdles near the 1.1225 level and the 76.4% Fib retracement level of the last decline from the 1.1261 high to 1.1111 low. If there is an upside break above the 1.1225 level, the pair could continue higher towards 1.1250 or even 1.1260.
On the downside, there are many supports near the 1.1210 and 1.1200 levels. There is also a connecting bullish trend line forming with support at 1.1210 on the hourly chart of EUR/USD.
Therefore, if there is a downside correction, the bulls could protect the 1.1200 support level. The next key support is near the 1.1190 level and the 50 hourly simple moving average. Only a close below the 1.1175 support level might push EUR/USD back in a bearish zone.
USD/CHF Technical Analysis
The US Dollar climbed significantly above the 1.0150 level against the Swiss franc. The USD/CHF pair even broke the 1.0200 resistance level and tested the 1.0235 level.
However, it seems like the pair struggled to gain momentum above the 1.0225 and 1.0230 levels. As a result, there was a downside reaction below the 1.0200 support level and the 50 hourly simple moving average.
The pair even broke the 1.0180 level and tested the 1.0175 level. It recovered recently above the 1.0190 level and the 50% Fib retracement level of the recent drop from the 1.0216 high to 1.0175 low.
However, the 1.0200 resistance area prevented gains along with the 61.8% Fib retracement level of the recent drop from the 1.0216 high to 1.0175 low. There is also a major bearish trend line formed with resistance near 1.0200 on the hourly chart.
Therefore, the pair is likely to face a strong resistance near the 1.0200 level. In the short term, there are chances of more downsides below the 1.0180 and 1.0175 support levels.
The next key support for USD/CHF is near the 1.0160 level, where buyers might appear and protected additional losses. Any further losses will most likely push the pair towards 1.0140.