Patterns: AUD/CAD, EUR/CHF

Dukascopy Bank Team Dukascopy Bank SA

AUD/CAD 4H Chart: Breakout occurs

Upside risks have dominated the Australian Dollar versus the Canadian Dollar since the beginning of September. After hitting the upper boundary of a long-term descending channel pattern at 0.9142 on September 13, the exchange rate made a U-turn south. As a result, a breakout occurred through the bottom border of a junior ascending channel during the morning hours of Thursday's trading session.

Given that a breakout had occurred, the AUD/CAD currency pair will most likely continue its southern movement within the following trading sessions. The potential for bearish traders would be near the weekly S2 at 0.8957.

However, a support level formed by the 200-hour simple moving average at 0.9006 could provide support for the currency exchange rate in the short term.

EUR/CHF 4H Chart: Tests weekly resistance level

The common European currency has appreciated about 1.70% in value against the Swiss Franc since September 5 after the currency pair reversed from a support cluster formed by the weekly S2 and the monthly S1 at 1.0807.

The exchange rate is currently testing a resistance level set by the weekly R1 at 1.1013.

If the resistance line holds, a decline towards the 50– period simple moving average at 1.0952 could occur in the short term.

On the other hand, if the currency exchange rate passes the weekly R1, as mentioned above, bulls could drive the price towards the weekly R2 at 1.1098 during the following trading sessions.

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.