EUR/GBP Weakening; GBP/USD Trying To Bounce
Swissquote Ltd | Apr 23, 2018 10:01
EUR/USD Decreasing
EUR/USD is decreasing after reaching 1.24, trading below 1.23 and heading along the 1.2265 range. The pair is currently maintained between hourly support and resistance given at 1.2165 (17/01/2018 low) and 1.2506 (25/01/2018 high). The technical structure suggests short-term downward trading 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 Trying to bounce
GBP/USD is bouncing off from 1.3993 low, heading along the 1.4030 range. The pair is currently trading at mid-March high. Hourly support and resistance are given at 1.3905 (23/02/2018 low) and 1.4377 (17/04/2018 high). The technical structure suggests short-term increase.
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 Testing resistance at 107.90
USD/JPY bounce from 106.90 low continues, approaching hourly resistance at 107.90 (14/02/2018 high). The bearish pattern started in January 2018 is weakening. Hourly support at 104.30 (08/11/2016 low) is distanced. The shortterm technical structure suggests continued short-term upward moves.
We favor a long-term bearish bias. Support remains at 101.20 (09/11/2016 low). 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). The pair trades below its 200 DMA.
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USD/CHF Approaching resistance at 0.9770
USD/CHF rise continues, approaching hourly resistance at 0.9770 (12/01/2018 high). The bullish pattern started from 0.9188 (16/02/2018 low) continues. The pair is contained between hourly support and resistance given at 0.9296 (05/02/2018 low) and 0.9770 (12/01/2018 high). The technical structure suggests short-term upward trading moves.
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 Bearish consolidation
USD/CAD recovery phase from 1.2528 low pauses, starting a bearish consolidation at the 1.2755 range. Hourly support and resistance at 1.2504 (06/02/2018 low) and 1.2755 (22/02/2018 high) are maintained. The short-term technical structure suggests short-term sideways trading moves.
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 pair is trading above its 200 DMA.
AUD/USD Trading sideways
AUD/USD decrease from 0.7813 is pausing, starting a bearish consolidation and heading along the 0.7665 range. The pair is trading at December low. Hourly support and resistance are given at 0.7638 (15/12/2017 low) and 0.7979 (15/01/2018 high). The technical structure suggests further short-term sideways trading 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 Weakening
EUR/GBP is decreasing after reaching 0.8792 high, trading at 0.8753 and heading along the 0.8743 range. EUR/GBP bearish pattern started in March is somewhat weakened. Hourly support and resistance are given at 0.8621 (17/04/2018 low) and 0.8816 (29/01/2018 high). The technical structure suggests short-term decrease.
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 Maintained at 1.1975
EUR/CHF bullish momentum pauses below the 1.20, trading at 1.1975. Strong resistance at 1.20 remains. Hourly support given at 1.1842 (11/04/2018 low) is distanced. The short-term technical structure suggests further short-term sideways trading moves.
In the longer term, the technical structure has reversed. Strong resistance at 1.20 (level before the unpeg) is now at reach. 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 and resistance can be found at 1.0624 (24/06/2016 low) and 1.2097 (18/12/2014 high).
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