EUR/USD: Bearish consolidation
EUR/USD
Bearish consolidation.
-
EUR/USD continues its bearish consolidation phase, trading at the 1.24 range, distancing hourly resistance at 1.2506 (25/01/2018 high). Hourly support remains at 1.2165 (17/01/2018 low). The technical structure suggests short-term sideways trading moves.
-
In the longer term, the momentum is turning largely positive. We favor a continued bullish bias. Key resistance is holding at 1.2886 (15/10/2014 high) while strong support lies at 1.1554 (08/11/2017 low).
Stay on top of the markets with Swissquote’s News & Analysis
GBP/USD
Slight increase.
-
GBP/USD is bouncing off from 1.4136 low, heading along the 1.42 range. The pair is contained between hourly support and resistance given at 1.4023 (15/02/2018 low) and 1.4278 (02/02/2018 high). The technical structure suggests short-term decrease.
-
The long-term technical pattern is reversing. The Brexit vote had paved the way for further decline but the pair is moving to 2016 highs. Long-term support and resistance are given at 1.1841 (07/10/2017 low) and 1.5018 (24/06/2016 high).
USD/JPY
Weakening.
-
USD/JPY is decreasing following recent sideways trading moves, approaching March 105.30 low. The bearish pattern started in January 2018 is maintained. The short-term technical structure suggests short-term decrease.
-
We favor a long-term bearish bias. Support remains at 101.20 (09/11/2016 low). A gradual rise toward the major resistance at 125.86 (05/06/2015 high) seems unlikely. Expected to decline further support at 101.20 (09/11/2016 low). The pair trades largely below its 200 DMA.
Author
Peter A Rosenstreich
Swissquote Bank Ltd
Peter Rosenstreich is Swissquote Bank’s Head of Market Strategy and manages the global strategy desk; he has held various positions in several banking institutions in the United States, Europe & Asia.
