Dukascopy Bank Team
Dukascopy Bank SA
GBP/JPY 4H Chart: Channel Up
Comment: The British Pound is likely to continue appreciating relative to the Japanese Yen. Right now GBP/JPY is trading between two well-defined parallel trend-lines, and there are no major resistances ahead. The nearest such historically important level is as far as 215.86, where the currency pair made a U-turn back in July of 2008. Nevertheless, we expect a correctional sell-off to start in the vicinity of 200 yen. We also should not rule out a small dip in the short run, down to 193.43, before the pair starts forming an up-leg. As for the sentiment of the SWFX market, the traders are mostly bearish towards the Sterling. At the moment 70% of open positions are short.
EUR/CHF 1H Chart: Channel Down
Comment: While on the higher time-frames the Euro is bullish, after bottoming out in April, on the hourly chart there is a strong case in favour of a near-term decline. During the next several days every new high is likely to be lower than the previous maximum. Right now the ceiling at is 1.0519, where the daily R2 merges with the upper trend-line of the bearish channel. However, every step closer to the major support trend-line at 1.0320 will increase the upside risk, and for the time being this is seen as a floor, which is expected to turn around the current downward trend around. In the meantime, a large portion of open positions, namely 74%, is short the Euro.
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.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.