Patterns: USD/CHF EUR/GBP ZAR/JPY HKD/JPY

USD/CHF 4H Chart: Likely to maintain channel

The US Dollar has been edging higher in a junior ascending channel against the Swiss Franc since the beginning of February. The currency pair has surged by 2.25% in value during this period.

All things being equal, the exchange rate will most likely continue to surge in the junior ascending channel pattern. The potential target for the USD/CHF pair will be at the 0.9900 marks.

However, given that the currency exchange rate is currently trading near the lower boundary of the channel pattern, a breakout could occur within the following trading sessions.

 

EUR/GBP 4H Chart: Potential breakout

Since the beginning of February, the common European currency has declined by 2.81% in value against the British Pound. The currency pair tested December swing low at 0.8285 on February 18.

The exchange rate is currently trading near the upper boundary of a descending channel pattern at 0.8403. A breakout could occur within this week's trading sessions.

However, if the descending channel pattern holds, the EUR/GBP currency exchange rate would continue to decline in the descending channel pattern during the following trading sessions.

 

ZAR/JPY 1H Chart: Bears could prevail

During the first three weeks of February, the ZAR/JPY currency pair consolidated within the symmetrical triangle pattern. During today's morning, the pair broke lower pattern line at 7.30.  

From a theoretical point of view, it is likely that some downside potential could prevail in the market. In this case the exchange rate could re-test the psychological level at 7.00 in the medium term. 

It is unlikely that bulls could prevail in the market, and the currency pair could exceed the Fibonacci 39.30% at 7.80 in the medium term.

 

HKD/JPY 1H Chart: Short-term decline expected

The HKD/JPY exchange rate continued to trade upwards, followed by the ascending trend line. Currently, the rate is trading near 14.20.  

Note that the currency pair is pressured by the 55-, 100– and 200-hour SMAs, currently located in the 14.20/14.30 area. Thus, some downside potential could prevail, and the pair could re-test the given trend line located circa 14.05 in the sort term. 

If the given line holds, it is likely that a reversal north could follow, and the exchange rate could re-test the 14.40 level. Otherwise, the rate could decline to the support level—the Fibonacci 61.80% retracement at 13.82.