Dukascopy Bank Team
Dukascopy Bank SA
CAD/CHF 1H Chart: Rising Wedge
Comment: There are signs that the latest recovery from 0.68 might have come to an end. CAD/CHF is trading within the boundaries of the rising wedge, and this implies weakening demand for the Loonie. The base case scenario is a dip through the green trend-line during the next two days. If this is indeed the case, the first target will be at 0.7180 (Jan 28 low), but the pair will have the potential to decline lower, down to the 0.7085/70 demand zone, where we have the 200-hour SMA, weekly pivot point, and Jan 26 low. At the same time, if the Dollar manages to gain a solid foothold above 0.7260 (Jan 5 high), the chances are that the current recovery will be able to extend even up to 0.7750, namely Dec high.
XAU/USD 4H Chart: Channel Up
Comment: The ascending channel gold is forming at the very end of its four-hour chart might be deceiving, as the price is in fact trading right at the upper edge of another, more senior channel. Accordingly, we do not expect the green trend-line to guide the bullion north for much longer. And while we do not rule out a rally from 1,111/1,108, there is a low probability of the price advancing beyond 1,128 dollars. Instead, the rate is expected to violate the support line, which in turn will open up a path to 1,085/1,084, where the precious metal is to probe demand area created by the monthly R1, 200-period moving average, and the lower boundary of the two-month channel.
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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