USD/CHF trades within a downside channel

JFD Team JFD

USD/CHF has been in a recovery mode since yesterday, when it hit support at 0.9030. Nonetheless, overall, the pair continues to trade within the downside channel that’s been containing the price action since September 28^th, as well as below all three of our moving averages on the 4-hour chart. Thus, we would consider the short-term outlook to be negative for now, even if we see some further recovery within the channel.

A break above 0.9090 may confirm the case for additional gains and may pave the way towards the crossroads of the 0.9124 level and the upper bound of the pre-discussed channel. The bears may jump into the action from near that territory and perhaps push the rate down for another test near 0.9030. If that level doesn’t hold this time around, its break would confirm a forthcoming lower low and may pave the way towards the psychological round figure of 0.9000, which provided support on August 31^st and September 1^st.

Shifting attention to our short-term oscillators, we see that the RSI rebounded from its below-30 zone and now looks to be heading towards 50, while the MACD, although negative, lies above its trigger line and points north as well. Both indicators detect slowing downside speed and support the notion for some further recovery within the channel before the next negative leg.

In order to abandon the bearish case and start examining whether the bulls have gained the upper hand, we would like to see a decisive break above 0.9124. Such a move would also take the rate above the upper end of the channel and may initially encourage advances towards the peak of October 19^th, at 0.9165. Another break, above 0.9165, could carry more bullish implications, perhaps paving the way towards the 0.9198 level, marked by the high of October 8^th.

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

Author

JFD Team

JFD

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.