Patterns: DOLLAR.IDX/USD, GBR.IDX/GBP, CHF/SGD, NZD/CHF
|DOLLAR.IDX/USD 4H Chart: Decline could continue
The dollar index, which measures the US Dollar against a basket of major currencies, has been declining in a descending channel pattern since the beginning of November. The index has declined by 2.11% since November 10.
Everything being equal, the DOLLAR.IDX/USD exchange rate is likely to continue to edge lower during the following trading sessions. The potential target for bearish traders would be at the 90.00 level.
However, the weekly support level at 91.12 could provide support for the dollar index in the shorter term.
GBR.IDX/GBP 4H Chart: Breakout could occur
The UK100, which measures the best 100 performing shares from the London Stock Exchange, has declined by 8.61% since last week's trading sessions. The index tested the lower boundary of an ascending channel pattern at 6245.28 on November 30.
Currently, the stocks are trading near the lower line of the channel pattern and could be set for a breakout.
If the breakout occurs, a decline towards the 200– period simple moving average at 6066.08 could be expected within this week's trading sessions.
However, if the channel pattern holds, bullish traders could continue to dominate the UK100 during the following trading sessions.
CHF/SGD 4H Chart: Short-term increase expected
The CHF/SGD currency pair continued to trade downwards, guided by the descending trend line.
It is likely that the exchange rate could gain support from the 55-, 100– and 200-period moving averages in the 1.4750/1.4850 range. Thus, some upside potential could prevail in the market, and the rate could re-test the 1.5100 level.
In the meantime, note that the currency pair could face the resistance level—the monthly R1 at 1.4972. Thus, a reversal south could occur, and the pair could continue to trade along the given trend line.
NZD/CHF 4H Chart: Bears could prevail in market
Since the beginning of November, the NZD/CHF exchange rate has been trading within a rising wedge pattern.
From a theoretical perspective, it is likely that the currency pair could breach the given pattern south and trade downwards in the nearest future. The pair could target the support level—the Fibo 38.20% at 0.6040.
In the meantime, note that the exchange rate could gain support from the 55– and 100-period moving averages in the 0.6315/0.6350 range. Thus, some upside potential could continue to prevail in the market.
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