BRENT.CMD/USD 4H Chart: Bullish run to continue

The Brent crude oil prices bounced off the 200– period simple moving average at 60.50 on November 20. As a result, the commodity has appreciated about 5.65% in value during this period.

All things being equal, the Brent.CMD/USD pair will likely target a resistance cluster formed by the monthly R2 and weekly R1 at 65.54.

If the resistance cluster holds, a brief retracement towards the 62.74 area could be expected in the short term.

However, if the pair breaks the cluster, the next target for bullish traders would be at a psychological level at 68.00.

Brent

 

LIGHT.CMD/USD 4H Chart: Could still edge higher

During the past one-week, the light crude oil prices appreciated about 6.40% in value. The 200– period simple moving average pressured the commodity higher during this period.

As for the near future, the LIGHT.CMD/USD exchange rate will most likely continue to edge higher. The potential target for the pair will be near the upper boundary of an ascending channel pattern at 59.98.

If the resistance cluster, formed by the upper border of the channel pattern and the combination of the monthly R2 and weekly R1 at the 59.98 area hold, a brief pullback towards the 57.50 could be expected during the following trading sessions.

Chart

 

USD/CNH 1H Chart: Downside potential could prevail

The USD/CNH currency pair has been trading downwards within the falling wedge pattern since the beginning of October. As apparent on the chart, the pair has already reversed south from the upper pattern line.  

From a theoretical perspective, it is likely that some downside potential could prevail in the market, as the exchange rate should target the lower pattern line located in the 6.9000/6.9400 area. 

However, this decline might not be immediate, as the currency pair could gain support from the monthly S1 and the Fibonacci 23.60% retracement, located at 6.9952 and 6.9733 respectively. Also, it is unlikely that bulls could prevail, and the pair could exceed the monthly PP at 7.0823.

USDCNH

 

HKD/JPY 1H Chart: Bulls might prevail

The Hong Kong Dollar continued to appreciate against the Japanese Yen within the rising wedge pattern. As apparent on the chart, the HKD/JPY currency pair reversed north from the lower pattern line.  

From a theoretical point of view, it is likely that bulls could prevail in the market, as the exchange rate should target the upper pattern line located in the 14.00/14.06 area.  

However, the expected advance might not be immediate, as the currency pair would have to surpass the resistance formed by the monthly R1 and the Fibonacci 50.00% retracement at 13.97. Also, it is unlikely that bears could prevail, and the pair could decline lower than the monthly PP at 13.77.

Chart

This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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