Patterns: USD/CNH CHF/JPY

Dukascopy Bank Team Dukascopy Bank SA

USD/CNH 4H Chart: All signals point downwards

The US Dollar's movements against the Chinese one currency have not been mapped for some time, because some consider them rather boring. The bottom line about the pair is that the US Dollar is losing value against the Yuan.

However, the movements of various timeframes can be mapped in various scale patterns. Moreover, it can be observed that the currency exchange rate has a rather notable tendency to respect Fibonacci retracement lines.

In regards to the near term future, the pair is either set to trade sideways or decline. The reason for such assumption is the fact that the pair has fallen below a very strong resistance cluster, which is located from 6.28 to 6.29 levels.

CHF/JPY 4H Chart: Bounces off strong resistance

The Swiss Franc is a safe haven currency, where funds flock to, if there is an increase in risk in the markets. The Japanese Yen also is a safe haven currency. However, if one puts them one against another, one can not just speculate technically, but also avoid some of the fluctuations to and from risky and conservative assets.

Regarding the technical picture, the rate recently bounced off a massive resistance cluster near the 111.50 level and began a decline. During the decline the pair once more confirmed the existence of a long term channel down pattern.

Moreover, recently the rate failed to regain its losses, as it failed to pass the 111.00 mark, where the weekly S1 is located at.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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