Dukascopy Bank Team
Dukascopy Bank SA
USD/CHF 4H Chart: Channel Up
Comment: The overall outlook on USD/CHF is bullish, being that the currency pair has formed an upward-sloping channel. The in the short run, however, we expect a decline, since the price is close to the upper trend-line of the pattern. The rate should top out near 1.0255 and then fall. If this resistance is not enough to stop the present advancement, there is also the January high at 1.03 that supposedly is even more difficult to breach. In the meantime, the near-term losses are to be limited by the cluster at 1.0070, and in case of a deeper decline support at 0.9980 (Nov 12 and weekly S2) might need to come into play. Additional demand is at 0.9850, represented by the 200-period SMA.
USD/JPY 4H Chart: Channel Up
Comment: The US Dollar appears to be in a good spot to initiate a rally. The base scenario is a rebound from the up-trend at 122.90 and a recovery towards a dense supply area between 125 and 126 yen, which consists of the monthly R3, upper trend-line of the channel and summer highs. However, we should also not rule out a possibility of USD/JPY dipping beneath 122.90, especially considering the ‘sell’ signals among the four-hour and weekly technical indicators. The focus will then shift to the monthly R1 at 122.08 and 200-period SMA at 121.20. Still, the risks are skewed to the upside, since the market is overcrowded with bears, who already take up three fourths of it.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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