Patterns: EUR/AUD, EUR/CAD, NZD/CHF, AUD/CHF

Dukascopy Bank Team Dukascopy Bank SA

EUR/AUD 4H Chart: Sell signals

The single European currency has declined by 2.87% against the Australian Dollar since last week's trading sessions. The currency pair was pressured lower by the 50– period simple moving average.

All things being equal, the exchange rate will most likely continue to trade in the descending channel pattern. Bearish traders could target a support cluster at the 1.6515 area.

However, given that the currency exchange rate is currently trading near the upper line of the descending channel pattern, a breakout might occur within this week's trading sessions.

EUR/CAD 4H: Two scenarios likely

The Eurozone single currency has edged lower by 2.02% against the Canadian Dollar since last week's trading sessions. The exchange rate was pressured lower by the 200– period simple moving average.

The currency pair is currently testing a resistance cluster formed by the 50– and 100– period SMAs at 1.5274.

If the EUR/CAD pair breaks the resistance cluster, a surge towards the 1.5500 area could be expected within this week's trading sessions.

However, if the 50– and 100– period SMAs holds, bearish traders would continue to pressure the currency exchange rate lower during the following trading sessions.

NZD/CHF 1H Chart: Two scenarios likely

The NZD/CHF currency pair has been trading within an ascending channel since the end of March. The pair has already surpassed the 0.5850 level.

From a theoretical point of view, it is likely that the exchange rate could continue to trade within the given channel in the medium term. In this case the rate could face the resistance formed by the Fibonacci 38.20% retracement at 0.6153 at the beginning of June.

However, note that the currency pair would have to surpass the Fibonacci 23.30% retracement at 0.5919. If the given level holds, it is likely that a reversal south could occur, and the pair could re-test the psychological level at 0.5300.

AUD/CHF 1H Chart: Ascending channel in sight

The AUD/CHF exchange rate has been trading within an ascending channel since the end of March. The rate has already exceeded the 0.6200 mark.

From a theoretical perspective, it is likely that the currency pair could continue to trade upwards within the given channel in the medium term. In this case the pair could reach the Fibonacci 50.00% retracement at 0.6599 at the beginning of June.

However, note that the exchange rate would have to surpass the resistance formed by the monthly R1 and the Fibonacci 38.20% retracement in the 0.6314/0.6385 range. If the given resistance holds, it is likely that a reversal south could occur, and the rate could re-test the psychological level at 5.400.

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.