Dukascopy Bank Team
Dukascopy Bank SA
USD/CHF 4H Chart: Channel Down
Comment: While in the short run the outlook for USD/CHF is bullish, the longer-term perspectives are bearish. During the next few days the pair is expected to reach the level of 0.97, where it should top out near a cluster of resistances, which includes monthly PP, 200-period SMA and also the upper boundary of the emerging channel. Once this upward correction comes to an end, the new target should be a strong demand area at 0.9550, implied by the monthly S1, falling support line and September low. In the meantime, in case USD/CHF jumps over 0.97, the recovery will likely extend up to the previous month’s high at 0.9850. As for the positioning of the traders,67% of them are long right now.
AUD/CAD 1H Chart: Channel Up
Comment: AUD/CAD has been rejected by 0.9585 recently, but the bias remains bullish. The current sell-off should be limited by the rising support line at 0.9520, which should trigger enough buying in order for the price to surpass 0.96 and touch the upper boundary of the forming channel once again. In the longer term the Aussie could be aiming for a re-test of the August high at 0.9750. Meanwhile, a close beneath 0.9520 will imply a slide down to 0.9463. Additional significant supports are at 0.9420 and 0.9380 represented by the weekly PP and 200-hour SMA, respectively. The SWFX market is mostly long the Australian Dollar against its Canadian counterpart, namely 59% of the traders.
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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