Patterns: USD/CHF, EUR/GBP
|USD/CHF 4H Chart: Breakout likely to occur
The US Dollar has surged by 129 pips or 1.34% against the Swiss Franc since May 1. The currency pair breached the 50-, 100– and 200– period SMAs during yesterday's trading session.
The exchange rate will most likely continue to edge higher within this week's trading sessions. A breakout through the upper boundary of a junior descending channel could occur.
However, a resistance cluster formed by the weekly R1 and the monthly R1 near the 0.9750 area could provide resistance for the USD/CHF currency exchange rate in the short-term.
EUR/GBP 4H: Could edge higher
The common European currency has been trading between the range of 0.8836/0.8686 against the British Pound since the beginning of April.
Everything being equal, the EUR/GBP currency pair will most likely aim for the 200– period simple moving average at 0.8836 during the following trading sessions. Furthermore, technical indicators suggest a buying signal on the weekly time-frame chart.
However, a resistance cluster formed by the weekly and monthly pivot points at 0.8759 could provide resistance for the currency exchange rate within this week's trading sessions.
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