XAU/USD 1H Chart: Channel Up
Comment: The precious metal is currently in a strong up-trend, it has already gained more than $100 in price since the beginning of the year. At the moment XAU/USD is consolidating, being unable to pass through 1,306, represented by the weekly R1 and Jan 21 high. Once this resistance is overcome, the bullion will confirm its bullish intentions, setting a new target at 1,323, namely at the upper boundary of the bullish channel, which is reinforced by the weekly R2 and also by the 2014 Aug high. The downside should be limited by the lower support trend-line at 1,285. Meanwhile, the sentiment is distinctly bullish, with 66% of all open positions being long.
CHF/SGD 1H Chart: Triangle
Comment: Since Jan 15 the trading range of CHF/SGD has been narrowing, leading to formation of a symmetrical triangle. Taking into account that the pattern was preceded by an upside gap, the likelihood of a bullish break-out is deemed to be higher than a chance of the support trend-line being breached. Once the resistance at 1.5650/00 is broken, the Franc will be expected to keep advancing until the currency meets another important supply level at 1.5950. On the other hand, should the demand at 1.5330 give in earlier, there will be a dense demand area waiting for the pair around 1.51 that may well not let the price reach either the weekly PP or the 200-hour SMA.
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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