As the Euro struggles to clear the 1.0950 resistance level, it has started a downward trend against the US Dollar. The hourly chart of EUR/USD shows a failed attempt to surpass the 1.0900 support, resulting in a decline below the 1.0875 support and the 50-hour simple moving average. Currently, the pair is consolidating losses near the 1.0840 level. The bearish signs indicate that any upside movements may be limited. Resistance levels to watch for include 1.0855, 1.0870, and ultimately 1.0900. On the downside, immediate support is seen near 1.0840, followed by the 1.0810 level. A break below 1.0810 could lead the pair towards 1.0765.
USD/CHF Analysis
Conversely, USD/CHF is experiencing a positive trend above the 0.8900 resistance zone. The pair has moved upwards from the 0.8820 support level and broke through the 0.8870 resistance, reaching as high as 0.8925. Currently, USD/CHF is testing a major bullish trend line with support at 0.8910. Resistance levels to monitor include 0.8925, 0.8940, and the main barrier at 0.8950. A clear break above 0.8950, coupled with the RSI remaining above 50, could signal a further increase towards 0.8980. Conversely, a correction might lead the pair to test support levels at 0.8900, 0.8870, and potentially 0.8845.
The EUR/USD and USD/CHF pairs are exhibiting different trends in the current market conditions. While the Euro struggles to break through key resistance levels and is facing downside pressure, the US Dollar is showing strength against the Swiss Franc and aiming for higher levels. Traders should closely monitor the technical levels mentioned above to gauge potential entry and exit points in their trading strategies. As always, it is essential to perform thorough analysis and risk management to navigate the dynamic forex market environment effectively.
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