Dukascopy Bank Team
Dukascopy Bank SA
USD/CHF 4H Chart: Bounces off support
The US Dollar has declined by 0.89% against the Swiss Franc since January 18. The currency pair tested the lower line of an ascending channel pattern at 0..8840 during last week's trading sessions.
Given that the exchange rate has bounced off the lower boundary of the ascending channel, bullish traders are likely to pressure the USD/CHF pair higher during this week's trading sessions.
However, the 50– period simple moving average at 0.8882 could provide resistance for the currency exchange rate this week.
EUR/GBP 4H Chart: Two scenarios likely
The common European currency has edged lower by 2.00% against the British Pound since January 11. The 50– period simple moving average has pressured the exchange rate lower during the last three weeks.
As for the near future, the EUR/GBP currency pair is likely to continue to trend bearish. Bears could aim at the 0.8760 level during the following trading sessions.
However, given that the currency exchange rate is currently trading near the upper boundary of a descending channel pattern, a breakout might occur within this week's trading sessions.
EUR/SGD 4H Chart: Downside potential could prevail
Since the middle of December, the EUR/SGD currency pair has been trading within a descending channel.
From a theoretical point of view, it is likely that the exchange rate could continue to decline within the predetermined pattern in the medium term. In this case the rate could decline below 1.6000 by the end of February.
In the meantime, note that the currency pair is pressured by the 55-, 100– and 200-preiod moving averages in the 1.6105/1.6190 range. Thus, a breakout south could occur, and the pair could decline to the Fibo 61.80% at 1.5861.
AUD/SGD 4H Chart: Two scenarios likely
Since the middle of December, the AUD/SGD exchange rate has been trading upwards, guided by an ascending trend line.
It is likely that the currency pair could gain support from the 200-period moving average near 1.0160 and continue to trade upwards in the nearest future. The pair could target the psychological level at 1.0700.
In the meantime, note that the exchange rate is pressured by the 55– and 100-period moving averages near 1.0250. Thus, some downside potential could prevail in the market, and the rate could target the Fibo 61.80% at 0.9929.
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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