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FX Majors: Cable Steep Rise; Swissie Dizzy Fall

Published 25/01/2018, 11:14
EUR/USD
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GBP/USD
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USD/JPY
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USD/CHF
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AUD/USD
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EUR/GBP
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USD/CAD
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EUR/CHF
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EUR/USD Trading around 1.2415

EURUSD Chart

EUR/USD keeps on increasing. The pair has strongly bounced back. Hourly support is given at 1.2165 (17/01/2017 low). The technical structure suggests further short-term upside moves.

In the longer term, the momentum is turning largely positive. We favor a continued bullish bias. Key resistance is holding at 1.2856 (15/10/2014 high) while strong support lies at 1.1554 (08/11/2017 low).

GBP/USD Steep rise

GBPUSD Chart

GBP/USD keeps trading higher. The technicals is positive. Hourly support is given at 1.3742 (16/01/2018 low).

The long-term technical pattern is reversing. The Brexit vote had paved the way for further decline but the pair is now moving up to 2016 highs. A long-term support given at 1.1841 (07/10/2017 low) and a strong resistance at 1.5018 (24/06/2016 high) are identified.

USD/JPY Heading lower

USDJPY Chart

USD/JPY is trading below the 110 mark. The resistance at 111.50 (18/01/2018) is distanced. The technical structure suggests further shortterm downside moves.

We favor a long-term bearish bias. Support is now given at 101.20 (09/11/2016 low). A gradual rise towards the major resistance at 125.86 (05/06/2015 high) seems unlikely. Expected to decline further support at 93.79 (13/06/2013 low).

USD/CHF Dizzy fall

USDCHF Chart

USD/CHF is trading lower. Support at 0.9533 (19/01/2017) is now broken. Hourly resistance at 0.9668 (17/01/2017 high) moves away. Expected to show further short-term downside move.

In the long-term, the pair is still trading in range since 2011 despite some turmoil when the SNB unpegged the CHF. Key support can be found at 0.9072 (07/05/2015 low). The technical structure favours nonetheless a long term bullish bias since the unpeg in January 2015.

USD/CAD Continued decline

USDCAD Chart

USD/CAD is decreasing. Resistance points 1.2370 (17/01/2018) and 1.2356 (05/01/2018) are now exceeded. Hourly resistance is given at 1.2520 (17/01/2018 high) while further resistance given at 1.2589 (01/01/2018) is momentarily out of reach. The technical structure indicates that additional weakness is achievable.

In the longer term, the pair has broken longterm support that can be found at 1.2461 (16/03/2015 low). New support point is identified 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 below 200 DMA.

AUD/USD Riding higher

AUDUSD Chart

AUD/USD's upside pressures are growing. Hourly resistance given at 0.8040 (19/01/2018) is outpaced. Support stands at 0.7849 (12/01/2018 low). The technical structure indicates further short-term upside move.

In the long-term, the trend is turning positive. Key supports 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 (drawing near).

EUR/GBP Decreasing

EURGBP Chart

EUR/GBP is declining. The pair is distancing the resistance at 0.8929 (01/12/2017 high) and endures downward pressure. Support at 0.8761 (14/12/2017 low) is broken while resistance at 0.8689 (08/12/2017) is being monitored. Expected to show further decline.

In the long-term, the pair has largely recovered from lows in 2015. The technical structure suggests a growing upside momentum. The pair is trading below the range of its 200 DMA. Strong resistance can be found at 0.9500 (psychological level).

EUR/CHF Declining

EURCHF Chart

EUR/CHF is heading lower. The pair broke resistance point at 1.1710 (19/01/2018) and approaching resistance at 1.1680 (10/01/2018).Hourly resistance is at 1.1832 (15/01/2018 high). Expected to show further short-term downside 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. Supports can be found at 1.0184 (28/01/2015 low) and 1.0082 (27/01/2015 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

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