Will EUR/CHF turn north again?

JFD Team JFD

EUR/CHF entered a steep rally mode on Monday, when it broke above the upper bound of the falling wedge formation that contained the price action since June 11^th. Yesterday, the advance was stopped fractionally below the 1.0800 barrier, with the rate beginning a corrective slide. That said, despite the retreat, as long as the pair continues to trade above the upside support line drawn from the low of July 9^th, we will hold a positive stance.

The current setback may continue for a while more, perhaps until the rate tests the 1.0733 support, or the aforementioned upside line. The bulls may take charge again from near those zones and perhaps pull the trigger for another test near the 1.0800 area. If they are strong enough to overcome it this time around, we may see extensions towards the high of June 9^th, at around 1.0830.

Looking at our short-term oscillators, we see that the RSI exited its above-70 zone, and is now pointing down, perhaps headed towards its 50 line. The MACD, although positive, lies below its trigger line, pointing down as well. Both indicators detect declining upside momentum and support the notion for some further correction before, and if, the bulls decide to take the reins again.

Now, in order to start examining the bearish case, we would like to see a clear drop below Wednesday’s low, at 1.0700. The rate would be already below the pre-discussed upside line, something that may encourage the bears to push towards the Tuesday’s low, at 1.0650. Another break, below 1.0650, could extend the fall towards the 1.0615 zone, which provided decent support between July 1^st and 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.