EUR/USD Nosedives While USD/CHF Is Rising Steadily

EUR/USD Nosedives While USD/CHF Is Rising Steadily

EUR/USD started a strong decline below 1.1000 and traded below 1.0850. Conversely, USD/CHF is rising steadily and it recently climbed above the 0.9800 resistance area.

Important Takeaways for EUR/USD and USD/CHF

  • The Euro declined heavily below the 1.0900 and 1.0850 support levels against the US Dollar.
  • There is a key bearish trend line forming with resistance near 1.0810 on the hourly chart of EUR/USD.
  • USD/CHF climbed higher above the 0.9750 resistance to move into a positive zone.
  • There is a major bullish trend line forming with support near the 0.9815 level on the hourly chart.

EUR/USD Technical Analysis

In the past few days, the Euro followed a strong bearish path below the 1.0900 support area against the US Dollar. The EUR/USD pair even broke the 1.0850 support area to move into a bearish zone.

The recent decline was such that the pair dived below the 1.0800 level and settled well below the 50 hourly simple moving average. A new monthly low is formed near 1.0785 on FXOpen and the pair is currently consolidating losses.

EUR/USD Technical Analysis Euro US Dollar

It is trading above the 23.6% Fib retracement level of the downward move from the 1.0836 high to 1.0785 low. On the upside, there are many hurdles near the 1.0810 and 1.0820 levels.

Moreover, there is a key bearish trend line forming with resistance near 1.0810 on the hourly chart of EUR/USD. The trend line is close to the 50% Fib retracement level of the downward move from the 1.0836 high to 1.0785 low.

The main resistance is near the 1.0825 level and the 50 hourly simple moving average. Therefore, the bulls need to gain pace above the 1.0825 level to start a strong recovery in the near term.

In the mentioned case, EUR/USD could recover towards the 1.0850 and 1.0860 levels in the near term. Conversely, there is a risk of a sharp decline in the coming sessions below 1.0800 and 1.0780.

USD/CHF Technical Analysis

The US Dollar formed a strong support base above the 0.9750 level and recently climbed higher against the Swiss franc. The USD/CHF pair broke the 0.9780 and 0.9800 resistance levels to move back into a bullish zone.

Moreover, there was a break above the 0.9820 resistance and the 50 hourly simple moving average. Finally, the pair traded close to the 0.9840 level and formed a high at 0.9839.

USD/CHF Technical Analysis US Dollar Swiss Franc

It is currently correcting lower and recently spiked below the 23.6% Fib retracement level of the upward move from the 0.9796 low to 0.9839 high. However, there are many supports on the downside near the 0.9810 and 0.9800 levels.

Moreover, there is a major bullish trend line forming with support near the 0.9815 level on the hourly chart. The trend line is close to the 50% Fib retracement level of the upward move from the 0.9796 low to 0.9839 high.

Besides, the 50 hourly SMA is near the 0.9812 level to provide support. Therefore, dips remain well supported on the downside near the 0.9815 and 0.9810 levels.

If there is a downside break below the 0.9800 level, USD/CHF could decline back to 0.9750. On the upside, a clear break above the 0.9840 and 0.9850 levels might open the doors for a run towards 0.9900.

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Aayush Jindal
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