Dukascopy Bank Team
Dukascopy Bank SA
CAD/JPY 1H Chart: Channel Up
Comment: The CAD/JPY cross has been rising steadily since the 19th of May, when it formed the ascending channel. For most of the period, the pair held above the 200-hour SMA, but after touching the resistance trend-line on Tuesday, a sell-off has begun. Although the 200-hour SMA is providing formidable support, the 100-hour one is not allowing the Loonie to gain more ground against the Yen. The resistance cluster around 99.70 is likely to push the given pair down, as technical indicators suggest in the hourly and 4-hour timeframes. Once the 200-hour SMA is breached, movement to the support trend-line around 99.30 will become the target. The majority of market participants (73%) also hold short positions.
USD/CHF 1H Chart: Falling Wedge
Comment: The US Dollar was mostly struggling to stabilise above the 55-hour SMA, and even yesterday’s breach did not last. At the moment, a strong resistance cluster is pushing the USD/CHF down, but the weekly S1 seems to have limited the losses for now. Moreover, technical indicators in the short and long-term are suggesting a rebound, but volatility to the downside is expected. A fall under 0.93 is unlikely, as that area is bolstered by the weekly S1, which has already prevented a deeper fall. By the end of the day we should see the Greenback overcome the resistance cluster around 0.9340 and approach the pattern border. Three quarters of traders have a bullish perspective towards the Buck.
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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