EUR/USD Pausing before another leg higher
EUR/USD is turning positive, heading to hourly resistance at 1.2434 (06/02/2018 high). Hourly support remains at 1.2165 (17/01/2018 low). The technical structure suggests upside moves.
In the longer term, the momentum is turning largely positive. We favor a continued bullish bias. Key resistance is holding at 1.2886 (15/10/2014 high) while strong support lies at 1.1554 (08/11/2017 low).
GBP/USD Slight decrease
GBP/USD trades at the 1.40 range, the upward momentum is maintained. Edging higher along hourly resistance at 1.4151 (05/02/2018). Hourly support is given at 1.3742 (16/01/2018 low). The technical structure suggests further short-term upside moves.
The long-term technical pattern is reversing. The Brexit vote had paved the way for further decline but the pair is moving to 2016 highs. Long-term support and resistance are given at 1.1841 (07/10/2017 low) and 1.5018 (24/06/2016 high).
USD/JPY Buying pressures
USD/JPY trades slightly higher since yesterday trading session. The USD/JPY bearish trend is however maintained, heading for the 106 range. Hourly support and resistance are given at 105.55 (16/02/2018) and 109.09 (31/01/2018 high). The technical structure suggests shortterm downside moves.
We favor a long-term bearish bias. Support at 105.55 (03/05/2016 low) is almost reached. A gradual rise toward the major resistance at 125.86 (05/06/2015 high) seems unlikely. Expected to decline further support at 101.20 (09/11/2016 low).
USD/CHF Approaching 0.94
USD/CHF sideways trading is maintained but presents potential for further rise along hourly resistance at 0.9470 (08/02/2018 high). Hourly support remains at 0.9188 (16/02/2018 low). The technical structure suggests short-term increase.
In the long-term, the pair is still trading in range since 2011 despite some turmoil when the SNB unpegged the CHF. Key support lies at 0.9072 (07/05/2015 low) while resistance at 1.0344 (15/12/2016 high) is distanced. The technical structure favours a long term bullish bias since the unpeg in January 2015.
USD/CAD Sideways trading
USD/CAD recent bounce brings the pair back to the 1.27 range, where it is currently stabilized. January upward pattern is maintained, approaching hourly resistance at 1.2796 (25/12/2017 high). Hourly support is maintained at 1.2466 (15/02/2018 low). The technical structure indicates that continued rise is expected in the short-term.
In the longer term, the pair is trading between resistance point at 1.3805 (05/05/2017 high) and support at 1.2128 (18/06/2015 low). Strong resistance is given at 1.4690 (22/01/2016 high). The pair is likely to head lower. The pairs is trading at its 200 DMA.
AUD/USD Weakening
AUD/USD recovery falters, the pair is heading lower along the 0.78 range. AUD/USD currently trades along hourly support and resistance at 0.7773 (14/02/2018 low) and 0.7999 (17/01/2018 high). The short-term technical structure suggests further downside moves.
In the long-term, the upward trend slows down after failing to reach key resistance at 0.8164 (14/05/2015 low). Key support stands at 0.6009 (31/10/2008 low). A break of the key resistance at 0.8164 (14/05/2015 high) is needed to invalidate our long-term bearish view.
EUR/GBP Bouncing higher
EUR/GBP resurgence above 0.882 slowly decreases, heading for 0.88. Hourly support is given at 0.8756 (04/12/2017 low) while hourly resistance remains at 0.8873 (10/01/2018 high). The technical structure suggests short-term downside moves.
In the long-term, the pair has largely recovered from 2015 lows. The technical structure suggests further upside pressure. Strong resistance can be found at 0.9500 (psychological level) while support remains at 0.8304 (05/12/2016 low). The pair is trading below its 200 DMA.
EUR/CHF Strengthening
EUR/CHF is consolidating at the 1.155 range after rising from 1.1496 low (26/02/2018). The pair is trading between hourly support and resistance given at 1.1487 (12/02/2018 low) and 1.162 (07/02/2018 high). The technical structure suggests short-term sideway moves.
In the longer term, the technical structure has reversed. Strong resistance is given at 1.20 (level before the unpeg). Yet, the ECB's slowing QE program is likely to cause buying pressures on the euro, which should weigh in favour of the EUR/CHF. Support can be found at 1.0234 (20/04/2015 low).
Disclaimer: While every effort has been made to ensure that the datat quoted and used for the research behind this document is reliable, there is no guarantee that it is correct, and Swissquote Bank and its subsidiaries can accept no liability whatsoever in respect of any errors or omissions, or regarding the accuracy, completeness or reliability of the information contained herein. This document does not constitute a recommendation o sell and/or buy any financial products and is not to be considered as a solicitation and/or an offer to enter into any transaction. This document is a piece of economic research and is not intended to constitute investment advice, nor to solicit dealing in securities or in any other kind of investment.
Although every investment involves some degree of risk, the risk of loss trading off-exchange forex contracts can be substantial. Therefore if you are considering trading in this market, you should be aware of the risks associated with this product so you can make informed decisions prior to investing. The material presented here in not to be construed as trading advice or strategy. Swissquote Bank makes a strong effort to use reliable, expansive information, but we make no representation that it is accurate or complete. In addition, we have no obligation to notify you when opinions or data in this material change. Any prices stated in this report are for information purposes only and do not represent valuations for individual securities or other instruments