CAD/CHF 4H Chart: Two scenarios likely
Canada's Dollar has declined by 101 pips or 1.44% against the Swiss Franc since last week's trading sessions. The CAD/CHF currency pair breached the 50-, 100– and 200– period SMAs this week.
Currently, the exchange rate is trading near the lower boundary of a descending channel pattern and could be set for a breakout.
If the breakout occurs, a decline towards the 0.6840 level could be expected during the following trading sessions.
However, if the channel pattern holds, bullish traders could pressure the currency exchange rate higher in the shorter term.
CHF/JPY 4H Chart: Breakout could occur
The Swiss Franc has surged by 2.68% against the Japanese Yen since November 20. The currency pair tested the 117.00 level during the Asian session on Thursday.
As for the near future, the CHF/JPY exchange rate could continue to trend bullish. A breakout through the upper boundary of an ascending channel pattern might occur within this week's trading sessions.
However, if the channel pattern holds, the currency exchange rate is likely to make a pullback towards the 115.40 level during the following trading sessions.
USD/THB 4H Chart: Short-term decline expected
During November, the USD/THB currency pair dropped to the psychological level at 30.20.
Given that the exchange rate is pressured by the 55-, 100– and 200-period moving averages in the 30.28/30.70 range, it is likely that some downside potential could continue to prevail in the market.
Note that the currency pair could face the support level at 29.75. If the given level holds, a reversal north could occur. Otherwise, bears could continue to prevail in the market.
USD/SGD 4H Chart: Downside potential could prevail
Since September, the USD/SGD exchange rate has been trading downwards within a falling wedge pattern.
From a theoretical point of view, it is likely that the currency pair could continue to decline within the predetermined pattern in the medium term.
Meanwhile, note that the pair is pressured by the 55-, 100– and 200-period moving averages in the 1.3400/1.3500 area. Thus, a breakout south could occur, and the rate could target the 1.3060 level.
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.
Recommended Content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.