EUR/CHF 1H Chart: Channel Up

USD/TRY 1H Chart: Channel Up

Comment: Even without the bullish pattern itself the near-term outlook on the currency pair is positive, being that hourly and four-hour technical indicators are largely giving ‘buy’ signals, the daily ones are mixed at the moment. Moreover, USD/TRY has recently overcome and then confirmed the 200-hour SMA as the support, adding to the pair’s upward potential.

A recovery from the moving average, however, is contained by two parallel trend-lines, the upper one of which may be currently found at 1.9612, while the bullish support line that is supposed to guide the price towards new highs is located at 1.9441.

EUR/CHF 1H Chart: Channel Up

Comment: EUR/CHF has been on the decline since Aug 15, but the Euro started to depreciate in an orderly fashion 50 hours ago, on Aug 16, while attempting to breach the 200-hour SMA.

In the end this endeavour turned out to be successful and the pair continues trending downwards. The closest notable area it is likely to encounter is at 1.2304, where the daily S1, together with the down-trend support, stand ready to initiate short-squeezing. In the meantime, the bearish bias is preserved by the resistances at 1.2337 (200-hour SMA; daily pivot point) and at 1.2361 (daily R1; down-trend line).

USD/HKD 1H Chart: Channel Down

Comment: The last 180 hours USD/HKD has been trading below the 200-hour SMA and at the same time forming the bearish channel. Given considerable length of the pattern, its edges should be fairly reliable, but we would rather apply this characteristic only to the upper trend-line, since it has received significantly more confirmations than the lower one.

Right now the currency pair is found exactly near the upper trend-line, namely at 7.7550. Accordingly, we would expect the U.S. Dollar to stop appreciation and commence development of the leg down that in turn may extend down to 7.7532, but will meet 7.7545 and 7.7538 on the way there.

XAU/USD 1H Chart: Channel Up

Comment: The channel up on an hourly chart of XAU/USD has been evolving throughout the last 215 hours, since Aug 7, when the price reached a bottom at 1,273.23. At some point of the pattern’s life, on Aug 15, the formation was at risk of being breached, but the break-out proved to be a false one and did not turn into a full-blown sell-off that would invalidate the channel.

A present position of XAU/USD predisposes for a strong rally. This is implied by the fact that the pair is standing right next to the up-trend support line that is reinforced by the daily S1. Additionally, there is the 200-hour SMA at 1,336.58 in case the bears do not stop pushing the price south soon enough.