Dukascopy Bank Team
Dukascopy Bank SA
EUR/HKD 1H Chart: Triangle
Comment: Throughout the past week EUR/HKD has been forming a symmetrical triangle, consistently respecting two converging trend-lines. But now the currency pair seems to be ready to exit the boundaries of the pattern by breaking out to the upside.
Once the resistance at 10.54 is out of the way, the rate will be expected to target the daily R1 at 10.5557 first, then the daily R2 and Jun 19 high at 10.57. And while the hourly technical indicators are in favour of a rally, the daily studies are against such a development. Nevertheless, most of the SWFX market participants are currently holding long positions on the single European currency, namely 67% of them.
CHF/JPY 1H Chart: Channel Up
Comment: Right now CHF/JPY is recovering after a plunge seen earlier this month, from 115 down to 113. Considering the pair is currently fluctuating between two parallel trend-lines and it has recently gained a foothold above the 200-hour SMA, the Franc is likely to negate the recent losses eventually. However, judging by the indicators, the pair’s prospects are not as bright and it may initially seem—the ‘sell’ signals dominate on all of the most relevant time-frames. Still, given the current context, a breach of the resistance at 114.27 and a subsequent test of the upper trend-line at 114.51 appears to be a more likely course of events than a dip beneath a cluster of supports at 113.65.
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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