Dukascopy Bank Team
Dukascopy Bank SA
GBP/CAD 1H Chart: Channel Down
Comment: While in the short run the Sterling is likely to be bullish, in the longer-term perspectives are considered to be bearish. GBP/CAD is currently trading at the lower boundary of the emerging channel, which implies a high chance of an upward correction. The immediate resistance is at 2.01 (weekly S1 and daily PP), but the price is expected to recover up to 2.03. There the pair should meet the upper trend-line and 200-hour SMA and commence a new bearish wave. In the meantime, a majority of the SWFX market participants has a positive outlook on GBP/CAD: 72% of open positions are long, although the hourly and four-hour technical indicators are sending ‘sell’ signals.
EUR/CHF 4H Chart: Channel Up
Comment: The single currency has a good opportunity to outperform the Swiss Franc. From below EUR/CHF is underpinned by the rising trend-line and the long-term moving average. And while the near-term technicals are mixed, the weekly studies are confidently pointing north. If the rally is the case, the first major challenge will be expected only at 1.1050, represented by the September high. If breached, this will pave the way towards the upper edge of the forming channel at 1.1130. Meanwhile, violation of 1.0880 will invalidate the bullish outlook. In this scenario the September low at 1.08 will be the first one to greet the exchange rate before the August 19 low (1.0714).
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.