Patterns: USD/CHF, USD/TRY
|USD/CHF 4H Chart: Medium term decline
The US Dollar has been declining against the Swiss Franc in May. The decline began after the currency exchange rate met with the upper trend line of a dominant ascending channel up. Moreover, the reversal occurred just as the rate reached above the psychological 1.00 mark.
In the aftermath of the bounce off from the resistance, the currency exchange rate traded almost sideways. However, most recently the rate booked a point of reference, which provided the chance to mark a descending channel pattern.
The pattern is set to guide the rate to the lower trend line of the dominant channel. Although, that does not mean that the rate should be shorted, as the dominant support could be reached by trading sideways.
USD/TRY 4H Chart: Review after turbulence
The USD/TRY pair has been mostly affected by the fundamentally economical, damaging reforms of the Turkish government. Moreover, recent events in the Turkish bond market have massively increased volatility.
However, rather incredibly the currency rates sudden decline began in consistency with the long term ascending channel pattern, which represents the surge of the recent months.
In accordance with the pattern, the US Dollar should decline against the Lira until it reaches the support of the channel. It could occur in any way, as the support can be touched by trading downwards, sideways or even going higher.
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