The EUR/USD pair has been struggling to clear the 1.0950 resistance level, showing signs of weakness against the US Dollar. The pair recently broke below the key support level at 1.0900, indicating a bearish sentiment in the market. Currently, there is a major bearish trend line forming with resistance at 1.0870 on the hourly chart, suggesting that any upside moves are likely to be limited.
After hitting a low at 1.0841, the EUR/USD pair is now consolidating losses and facing immediate resistance at the 23.6% Fib retracement level near 1.0855. The next significant resistance is at 1.0870, in addition to the 50-hour simple moving average, making it a crucial level to watch for any potential reversal in the pair’s direction. In the event of a breakout above 1.0870, the pair could aim for the 1.0900 resistance, followed by a possible rally towards 1.0950.
On the downside, immediate support is seen near 1.0840, with a more substantial support level at 1.0810. A breach below 1.0810 could pave the way for further downside towards 1.0765, indicating a bearish outlook for the EUR/USD pair in the near term.
USD/CHF Technical Analysis
Contrary to the EUR/USD pair, the USD/CHF pair has been on the rise, showing positive signs above the 0.8900 resistance zone. The pair started a decent increase from the 0.8820 support level, indicating a bullish bias in the market. Currently, the USD/CHF pair is testing a major bullish trend line with support at 0.8910, highlighting the bullish momentum in the pair.
With a recent high near 0.8923, the pair is facing immediate resistance at 0.8925, followed by the next significant resistance level at 0.8940. The main barrier lies at 0.8950, and a clear break above this level could signal further upside potential for the USD/CHF pair, potentially targeting 0.8980 in the near term.
However, in the case of a downside correction, the pair might test the 23.6% Fib retracement level at 0.8900. The first major support level is near the 50% Fib retracement level at 0.8870, with the possibility of further bearish moves if the pair breaks below this level. The next significant support is at the 0.8845 pivot level, with a potential move towards the 0.8820 support level.
While the EUR/USD pair is facing downside pressure, the USD/CHF pair is exhibiting bullish momentum, creating an interesting dynamic between the two currency pairs in the current market environment. Traders should closely monitor key levels and trends to make informed trading decisions based on the technical outlook for both pairs.