CHF/JPY 4H Chart: Bounces off support cluster

Upside risks have guided the Swiss Franc higher against the Japanese Yen since the beginning of September after the currency pair reversed from a psychological support level at 107.00.

The exchange rate made a U-turn from a support cluster, formed by the combination of the 50-, 100- and 200-period simple moving averages, the monthly pivot point and the weekly S1 at the 108.30 on September 19.

Everything being equal, the CHF/JPY currency exchange rate will likely edge higher during the following trading sessions. The possible target for bullish traders would be near a swing high at 109.50.



CAD/CHF 4H Chart: Stranded between SMAs

Bullish momentum has dominated the Canadian Dollar against the Swiss Franc since the beginning of September. The currency pair tested the upper boundary of an ascending channel pattern at 0.7564 on September 11.

Currently, the exchange rate is stranded between a resistance level formed by the 50-period simple moving average at 0.7599 and a support line set by the 100– hour SMA at 0.7468.

As for the near future, the CAD/CHF exchange rate will most likely aim for a support cluster formed by the 200– period SMA and the combination of the monthly pivot point and the weekly S1 at 0.7413.



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.


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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