EUR/USD has continued its upward trajectory, breaking above key resistance levels, while USD/CHF remains weak and struggles to regain ground below 0.7850.
Key Points
- The euro has advanced sharply from the 1.1665 area against the US dollar.
- A contracting triangle is developing with support around 1.1775 on the hourly EUR/USD chart.
- USD/CHF has moved lower, slipping beneath 0.7840 and 0.7825 support zones.
- A notable bearish trend line is forming near 0.7840 on the hourly chart.
EUR/USD Technical Outlook
On the hourly timeframe, EUR/USD initiated a strong rally from the 1.1665 region, pushing through 1.1700 and gaining further bullish traction. Buyers drove the pair above both the 50-hour moving average and 1.1750, eventually clearing 1.1765 and 1.1780 before reaching a high near 1.1811.
Following this advance, the pair has entered a consolidation phase, with a modest pullback towards the 23.6% Fibonacci retracement of the recent upswing.
Support is emerging around 1.1775, aligned with the lower boundary of a contracting triangle. Additional support lies near 1.1755 and the 50-hour moving average. A break below this region could expose 1.1740, with further downside potentially extending towards 1.1700.
On the upside, initial resistance stands near 1.1800, followed by a key level at 1.1810. A sustained move above this zone could open the way towards 1.1850, with further gains targeting 1.1880 and possibly the 1.2000 area.
USD/CHF Technical Outlook
USD/CHF has maintained a downward bias after reversing from above 0.7880. The pair slipped below 0.7850, confirming bearish momentum against the Swiss franc.
Sellers pushed the pair beneath the 50-hour moving average and 0.7825 before support emerged near 0.7790. A low was recorded at 0.7789, and the pair is now stabilising with a mild corrective bounce.
On recovery attempts, resistance is expected around 0.7825, with stronger barriers near 0.7840, where the 50-hour moving average aligns with a descending trend line. A break above 0.7860 (50% Fibonacci retracement) would be required to shift momentum and could lead to a move towards 0.7880 and 0.7935.
On the downside, immediate support sits at 0.7800, followed by a critical zone near 0.7790. A break below this level could accelerate losses towards 0.7740, with further downside risk extending to 0.7700.
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