USD/SEK 1H Chart: Channel Up

XAU/USD 1H Chart: Descending Triangle

Comment: The most traded precious metal has been in the down-trend since mid-March when it reached a six-month high of 1,390.00. Throughout the time of its weakness, the bullion shaped a 321-bar long descending triangle pattern.

XAU/USD has recently breached the pattern’s support at 1,283.56 but a breakout did not follow as the yellow metal managed to return to the triangle area. In the hours to come, gold is likely to gain more ground given that almost 70% of traders at the SWFX are bullish on the instrument. Dwelling on the potential advance, we add that proximity of the apex may even turn the expected jump into a bullish breakout.

EUR/HKD 1H Chart: Broadening Falling Wedge

Comment: EUR/HKD has been balancing between gains and losses for the last three months amid elevated volatility in the market. However, the latest advance to a one-month high of 10.7828 made the pair’s trend more distinct, pushing it into the widening downward sloping channel.

Now the currency couple is unremittingly approaching the upper limit of the corridor. The boundary may be reached within a few hours given bullishness among the SWFX players as well as technical signals. Although technical data is neutral for the short and medium terms, it sends a clear ‘buy’ signal for the long-term.

USD/SEK 1H Chart: Channel Up

Comment: The rise by USD/SEK from a six-month of 6.357 hit in mid-March to the six-month high of 6.6274 lasted slightly more than a month ended April 21. During the climb, the currency couple started to develop more than a thousand pips wide channel up pattern.

Now the pair is locked by the 50-and 200-hour SMAs. According to the SWFX data, traders bet on appreciation of the pair in 71.43% of cases. If these expectations materialize, the pair is likely to test 6.5849/960 (four-hour PP, R1, R2, R3; daily PP) that will push the formidable resistance represented by the 50-hour SMA at 6.5974 to the fore.

CHF/JPY 4H Chart: Ascending Triangle

Comment: A 422-bar long ascending triangle pattern originated at a five-year high of 119.20 reached late December. However, now CHF/JPY is on the brink of an accelerating depreciation that usually follows a bearish breakout.

On April 21, CHF/JPY penetrated the lower limit of the triangle and since then had been sitting below this level. However, the 50-bar SMA meandering at 115.95 is containing selling pressure thus not allowing the pair to descend further. Interestingly, almost 60% of traders are still bullish on the pair, raising doubts whether the pair is incapable of coming back to the pattern and questioning whether the breakout was real.