Patterns: EUR/GBP, USD/CHF
|EUR/GBP 4H Chart: Could edge lower
The common European currency has surged by 1.47% in value against the British Pound since last week's trading sessions. The currency pair tested a resistance cluster at 0.8593 on January 14.
The exchange rate breached a support cluster formed by the 50– and 100– period SMAs and the lower boundary of an ascending channel pattern at 0.8525.
Most likely, the EUR/GBP pair will continue to edge lower during the following trading sessions.
However, a support level formed by the 200– hour simple moving average at 0.8461 could provide support for the currency exchange rate in the shorter term.
USD/CHF 4H Chart: Decline likely to continue
During the past week, the US Dollar has declined by 1.28% in value against the Swiss Franc. The currency pair was pressured down by the 50– and 100– period SMAs.
All things being equal, the exchange rate will likely continue to decline in a descending channel pattern during the following trading sessions. Bearish traders might target the weekly S3 at 0.9574.
However, the USD/CHF exchange rate is expected to make a brief upside movement towards the weekly pivot point and the 100– hour simple moving average at 0.9716 during next week's trading sessions.
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