Dukascopy Bank Team
Dukascopy Bank SA
USD/TRY 1H Chart: Channel Down
Comment: The overall outlook on USD/TRY is strongly bearish. The currency pair confirmed the downside breakout of the 16-month up-trend in the daily chart after an upward retracement from 2.89. Accordingly, we are likely to see USD/TRY preserve the bearish momentum until the price reaches the February low. However, there are notable supports in the way, such as the weekly S1 at 2.9264 and the Feb 10 low at 2.9180. The upside potential should be limited by the down-trend at 2.94, but the bias will stay negative as long as the pair is trading beneath the weekly pivot point and the 200-hour SMA. In the meantime, the SWFX sentiment is distinctly bearish, being that 74% of open positions are short.
CHF/JPY 1H Chart: Channel Down
Comment: The Swiss Franc is likely to keep depreciating against the Japanese Yen. The price has recently broken through a major support line, and this implies a prolonged decline. Once CHF/JPY completes the current bullish correction near the upper bound of the emerging channel at 113.30 yen, a strong demand area at 111.50/30 will become the new target. There the price will meet the lowest level since 2014. Meanwhile, in case of a close above 113.30, the rally is not expected to develop a lot further, being that there is a wide but nonetheless dense supply zone at 114.00/113.70, consisting of the long-term trend-line, daily R1, and Feb 22 high. As for the sentiment, 65% of positions at the moment are long.
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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