The recent increase in the EUR/USD pair above the 1.1000 resistance level has caught the attention of many traders. The Euro showed significant strength after breaking through the 1.0950 resistance against the US Dollar. This upward momentum has led to a connecting bullish trend line forming with support near 1.1090 on the hourly chart of EUR/USD at FXOpen.
Analyzing the technical aspects of the EUR/USD pair, we can see that there has been a clear bullish sentiment in the market. The pair started a fresh increase from the 1.0950 zone and successfully cleared the 1.1000 resistance. This has pushed the pair into a bullish zone, with the bulls managing to break above the 50-hour simple moving average and reach the 1.1050 level.
Currently, the pair is consolidating gains above the 23.6% Fib retracement level of the upward wave from the 1.0798 swing low to the 1.1132 high. The immediate support on the downside is near the connecting bullish trend line at 1.1090, followed by the 50% Fib retracement level at 1.1050. A break below these levels could potentially lead the pair towards the 1.1000 support level and beyond.
On the upside, the immediate resistance on the EUR/USD chart is near the 1.1130 zone, with the first major resistance at 1.1150. Further gains could see the pair targeting the 1.1200 and 1.1220 resistance levels. However, it is crucial to keep an eye on any potential downside risks that could push the pair back into a bearish zone towards 1.0950.
USD/CHF Technical Analysis
In contrast to the EUR/USD pair, the USD/CHF has been struggling below the 0.8600 resistance level after a decline from well above the 0.8700 zone. The US Dollar faced bearish pressure, leading to a drop below the 0.8635 and 0.8600 support levels against the Swiss Franc. Currently, the pair is consolidating losses near the 0.8520 level.
Looking at the technical analysis of USD/CHF, it is evident that there is a major bearish trend line forming with resistance near 0.8575 on the hourly chart at FXOpen. The pair could face resistance near the 23.6% Fib retracement level of the downward move from the 0.8748 swing high to the 0.8520 low at 0.8575. If there is a clear break above the 0.8635 resistance zone, the pair may have the potential to start another upward movement.
On the downside, immediate support on the USD/CHF chart is at 0.8520, followed by major support levels at 0.8500 and 0.8480. Further losses could pave the way for a move towards the 0.8450 level in the coming days.
The current market trends in the EUR/USD and USD/CHF pairs are showcasing interesting dynamics. While the EUR/USD pair is displaying a bullish sentiment with potential upside targets, the USD/CHF pair is struggling with bearish pressure. Traders should keep a close watch on key support and resistance levels to make informed trading decisions in the ever-changing forex market landscape.
It is essential to conduct thorough technical analysis and stay updated with the latest market developments to navigate the volatile nature of currency trading successfully. By understanding the intricacies of each currency pair and implementing a well-thought-out trading strategy, traders can capitalize on opportunities and mitigate risks in the foreign exchange market.
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