The Euro saw a significant rally against the US Dollar after breaking above the 1.0828 resistance level. This bullish momentum led to the formation of a connecting bullish trend line with support around 1.0845 on the hourly chart. The pair managed to clear key resistance levels and tested the 1.0875 zone. However, there was a slight retracement from the high, bringing the pair down towards the 1.0845 support level.
Looking at the technical analysis, the immediate support lies at the 50% Fib retracement level of the upward wave, followed by the 50-hour simple moving average at 1.0838. A break below this level could lead to further downside movements towards 1.0800 and even into a bearish zone at 1.0765. On the upside, the pair faces resistance at 1.0855, with stronger resistance at 1.0875. A clear break above this level could propel the pair towards 1.0920 and 1.0940, with further gains possibly reaching 1.1000.
USD/CHF Technical Overview
Conversely, the USD/CHF pair experienced a decline after falling below the 0.8860 support level. This move placed the pair in a short-term negative zone against the Swiss Franc. However, the bulls managed to find support near the 0.8800 level, leading to a potential reversal. The pair is currently facing resistance at the 50% Fib retracement level and a key contracting triangle with resistance near 0.8850.
In terms of technical analysis, immediate support lies at 0.8840, followed by stronger support at 0.8815 and 0.8780. Further losses may drive the pair towards the 0.8650 level in the near future. On the upside, a break above the 0.8860 resistance could spark another upward move, potentially surpassing the 0.8890 level.
Both the EUR/USD and USD/CHF pairs have shown interesting price movements recently, with the Euro showcasing strength against the US Dollar while the US Dollar faced pressure against the Swiss Franc. Traders should keep a close eye on key support and resistance levels to gauge potential trading opportunities in these currency pairs.
It is important to note that trading forex involves significant risks and should be approached with caution. It is always advisable to conduct thorough research and analysis before making any trading decisions.
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