EUR/USD formed support near 1.1215 and climbed steadily in the past few days. USD/CHF is currently recovering from the 0.9859 swing low and it could correct further higher.
Important Takeaways for EUR/USD and USD/CHF
- The Euro remained in a positive zone above the 1.1200 and 1.1220 support levels against the US Dollar.
- There was a break above a couple of bullish patterns near 1.1255 and 1.1310 on the hourly chart of EUR/USD.
- USD/CHF declined heavily and it recently tested the 0.9860 support area.
- The pair broke a major bearish trend line with resistance at 0.9905 on the hourly chart.
EUR/USD Technical Analysis
The Euro started a strong upward move from the 1.1150 swing low against the US Dollar. The EUR/USD pair climbed above the 1.1180 and 1.1200 resistance levels. The pair even surged above the 1.1250 resistance area.
The recent gains were positive, with a close above the 1.1300 level and the 50 hourly simple moving average. During the rise, there was a break above a couple of bullish patterns near 1.1255 and 1.1310 on the hourly chart of EUR/USD.
The pair even climbed above 1.1320 and traded as high as 1.1347 on FXOpen and the pair recently started a downside correction. It broke the 1.1320 level and the 50% Fib retracement level of the last wave from the 1.1251 low to 1.1347 high.
However, the 1.1300 support area prevented further declines. The 61.8% Fib retracement level of the last wave from the 1.1251 low to 1.1347 high also acted as a resistance.
The current price action is positive, suggesting a strong rise above 1.1350. On the downside, the main supports are near 1.1300 and 1.1280.
If there is a close below 1.1280, EUR/USD could move into a bearish zone. The next main support is near the 1.1250 level. On the upside, a break above 1.1350 may push the pair towards 1.1400.
USD/CHF Technical Analysis
The US Dollar remained in a bearish zone after it settled below the 1.0000 support area against the Swiss franc. The USD/CHF pair broke the 0.9980 and 0.9950 support levels to move into a bearish zone.
The pair even broke the 0.9900 support and the 50 hourly simple moving average. A swing low was formed at 0.9859 and the pair recently corrected higher.
There was a break above the 0.9900 resistance and the 50% Fib retracement level of the last decline from the 0.9949 high to 0.9859 swing low. Moreover, there was a break above 0.9910 and the 50 hourly simple moving average.
There was also a break above a major bearish trend line with resistance at 0.9905 on the hourly chart. It opened the doors for more gains above 0.9910 and the 61.8% Fib retracement level of the last decline from the 0.9949 high to 0.9859 swing low.
The pair is currently trading with a positive bias above the 0.9900 level and the 50 hourly SMA. Therefore, there are chances of more gains above the 0.9920 and 0.9940 levels.
The next main resistances are near 0.9980 and 1.0000. Conversely, if there is no break above 0.9940, USD/CHF might start a fresh decline below the 0.9900 support area in the near term.