Dukascopy Bank Team
Dukascopy Bank SA
USD/CHF 4H Chart: Channel Up
Comment: Despite the fact that USD/CHF is trading within the boundaries of the bullish channel, the US Dollar is a sell at the moment. While the long-term outlook remains positive, the currency pair has just bumped into the upper edge of the pattern, implying there is going to be a downward correction before the bullish trend is resumed.
The immediate support is at 0.9780, represented by the monthly R1 level, followed by the 200-period SMA and monthly PP at 0.97 and 0.965, respectively. However, the sell-off is likely to extend further, towards 0.960/0.955, where USD/CAD is supposed to meet the floor created by the lower trend-line, monthly S1 and Dec low.
EUR/SEK 1H Chart: Triangle
Comment: Already since mid-December the trading range of EUR/SEK has been constantly narrowing, and this has led to formation of a symmetrical triangle. Considering the overall bullish tendency the pair has been exhibiting since this year’s October and the signals provided by the technical indicators, a break-out to the upside appears to be a more probable scenario than violation of the support at 9.504.
Once the falling resistance line at 9.55 is breached, the main target will be the Dec 22 high at 9.58. In case the bulls keep pushing the price higher, the weekly R1 at 9.68 and Dec at high at 9.74 may become the next objectives.
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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