EUR/USD Bouncing again
EUR/USD is trading mixed. The pair is now retracing and lies well above 1.2325 (17/01/2018 high). Hourly support is given at 1.2223 (23/01/2018 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 Slight ascent following free fall
GBP/USD is bearish pressure pushed the pair at the range of 1.40. The technical structure suggests further potential downside move. Hourly support at 1.3916 (23/01/2018 low) is approaching.
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 Recovering after sharp decline
USD/JPY is rising back following weakness and trades above 109. Hourly resistance remains at 111.50 (18/01/2018 high). The technical structure suggests further short-term upside moves.
We favor a long-term bearish bias. Support is now given at 107.32 (08/09/2017 low). A gradual rise towards 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 Pushing higher
USD/CHF is strengthening. Hourly resistance is at 0.9449 (25/01/2018 high). Expected to show further short-term upside move.
In the long-term, the pair is still trading in range since 2011 despite some turmoil when the SNB unpegged the CHF. Support at 0.9259 (24/08/2015 low) is attainable. Key support remains 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 Edging lower
USD/CAD is weakening after having broken hourly resistance at 1.2520 (17/01/2018 high). Resistance is now given at 1.2589 (01/01/2018). The technical structure indicates that further short-term weakness is expected.
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 below 200 DMA.
AUD/USD Bouncing up after plummeting
AUD/USD is slowly recovering from its recent decline. Support at 0.7849 (12/01/2018 low) is now broken. The technical structure suggests short-term increase.
In the long-term, the trend is turning positive, yet fails reaching 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 Bullish momentum
EUR/GBP is trading higher and heads towards hourly resistance at 0.8929 (12/01/2018 high). Hourly resistance at 0.8846 (19/02/2018) is now reached. The technical structure suggests further short-term upside move.
In the long-term, the pair has largely recovered from lows in 2015. The technical structure suggests an upside momentum. The pair is trading above the range of its 200 DMA. Strong resistance can be found at 0.9500 (psychological level).
EUR/CHF Recovery continues
EUR/CHF buying pressure continues. Hourly resistance is given at 1.1685 (26/01/2018 high). Expected to show further short-term upside 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