Dukascopy Bank Team
Dukascopy Bank SA
EUR/CHF 4H Chart: Channel Up
Comment: Although the quality of the pattern is poor, there is a high chance of EUR/CHF developing the ascending channel further. First, the currency pair is facing a solid demand area around 1.0840, created by the weekly S1, monthly PP, up-trend, and 200-period SMA. Secondly, the single currency is oversold, being that 72% of open positions are short, and therefore there is not much room for new bears to enter the market. At the same time, even though the signals are weak, the daily and weekly indicators are mostly pointing north. Accordingly, the base scenario is a rally from 1.0840 up to the October’s high at 1.0950. In case of a dip beneath the key support there should be a sell-off at least to 1.0770/55.
USD/SEK 4H Chart: Ascending Triangle
Comment: USD/SEK is currently struggling at 8.76, but eventually the bulls should be able to push through this resistance. The ascending triangle the pair is forming suggests that demand is building up, and a break-out to the upside is the likely resolution to the pattern, which developed after the Oct 15-Nov 6 advancement.
We therefore expect the price to close above 8.76 this week and start its journey towards 8.84, where the rate should meet the monthly R1 and August high. In the meantime, the main support is between 8.70 and 8.67, violation of which will expose the 200-period SMA and monthly S1 at 8.5800/8.5550.
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.
Recommended Content
Editors’ Picks
GBP/USD rises to near 1.2540, driven by higher UK GDP
GBP/USD edged higher to near 1.2540 during Asian hours on Friday, buoyed by the release of higher-than-expected UK Gross Domestic Product (GDP) data for the first quarter.
EUR/USD: The crucial resistance level will emerge at the 1.0790–1.0800 region
The EUR/USD pair trades on a softer note near 1.0775 during the early European hours on Friday. The downtick of the major pair is supported by the renewed US Dollar demand amid hawkish comments from Federal Reserve officials.
Gold price extends the rally despite hawkish Fedspeak
Gold price gains momentum on Friday despite the modest rebound in US Dollar. The yellow metal edges higher as many economists expect a weakening labor market could prompt the Federal Reserve to cut interest rates sooner than currently expected to stimulate economic growth.
Ethereum waiting on a bullish trigger, Consensys CEO takes a jab at the SEC
Ethereum co-founder alleges that the SEC aims to stifle innovation through its enforcement actions against Ethereum-related companies. Grayscale CEO says he's optimistic the SEC would approve its spot ETH ETF application.
Rate cut optimism fuelled by higher US jobless claims
With Federal Reserve policy acting as the primary driver of investor sentiment in 2024, renewed optimism surrounding the possibility of rate cuts has propelled the Dow to its most significant rally since December.