CAD/HKD 1H Chart: Rising Wedge
|GBP/CHF 4H Chart: Rising Wedge
Comment: GBP/CHF gained 8.6% since early November while trading inside of rising wedge. The rate dipped underneath the bottom trend-line of the pattern on December 7 and has just executed a retracement of the broken trendline. We now expect the pair to extend the bearish trend and tackle 1.2765, the weekly Pivot Point with added strength by the upper boundary of the cloud support. When the rate enters the cloud we will watch 1.2740 closely as it is likely to cause some trouble for the momentum. In case a surge extends instead, it will be capped immediately by the upper trendline at 1.2842.
CAD/HKD 1H Chart: Rising Wedge
Comment: A rising wedge led CAD/ HKD out of the four-month descending channel, which has now built up some bearish potential for a correction of the broken senior channel line. The pair is now repeatedly approaching the upper trend-line of the wedge at 5.8839 which brings some more upside risks into the picture. While we still believe the pair will exit the pattern to the downside, we cannot eliminate a violation to the upside that would likely be capped by 5.8861 or 5.8909. The expected bearish trend would at first be tested at 5.8725 and then 5.8629/8620, with a possible bottom boundary target around 5.8649.
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