FX Majors: AUD Bouncing Up; EUR Heading Higher; GBP Bullish Momentum
Swissquote Ltd | Feb 13, 2018 10:54
EUR/USD Heading higher
EUR/USD is approaching resistance at 1.2356 (24/01/2018 high). Support is located at 1.2165 (17/01/2018 low). The technical structure suggests further 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 Bullish momentum
GBP/USD is bouncing since recent sideways moves, trading between resistance at 1.4003 (23/01/2018 high) and support at 1.3742 (16/01/2018 low). The technical structure suggests further potential upside move.
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 Decline resumes.
USD/JPY is weakening further
Hourly support at 107.63 (08/09/2017 low) is now broken, suggesting the pair could even reach resistance at 107.32 (08/09/2017 low). Hourly resistances can be found at 111.50 (18/01/2018) and 113.75 (12/12/2017 high). The technical structure suggests further short-term downside moves.
We favor a long-term bearish bias. Support given at 107.32 (08/09/2017 low) is nearing. 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 Selling pressures increase
USD/CHF is weakening following yesterday's sideways trading. The declining trend line remains intact, heading towards resistance at 0.9257 (01/02/2018 low). Hourly resistance stands at 0.9559 (24/01/2018 high) while further resistance remains at 0.9668 (17/01/2018 high).
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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 Consolidating above 1.2550
USD/CAD trades at the 1.2570 range, slightly above 1.2550. The pair lies between hourly resistance at 1.2748 (24/11/2017 high) and support given at 1.2480 (20/10/2017 low). The technical structure indicates that further shortterm side trading 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 Strengthening further
AUD/USD bounced back at 0.7759 (09/02/2018 low) and continues its ascent, heading toward resistance at 0.7884 (19/10/2017 high). Hourly support remains at 0.7638 (15/12/2017 low). The technical structure suggests further short-term increase.
In the long-term, the upward trend resumes 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 Retracement maintained
EUR/GBP is trading higher and approaches resistance at 0.8929 (12/01/2018 high). Hourly support remains at 0.8687 (25/01/2018). The technical structure suggests further short-term upside move.
In the long-term, the pair has largely recovered from 2015 lows. The technical structure suggests further upside pressure. The pair is trading above the range of its 200 DMA. Strong resistance can be found at 0.9500 (psychological level) while support remains at 0.8304 (05/12/2016 low).
EUR/CHF Bearish breakout
EUR/CHF continues its decline heading toward 1.15. Hourly resistance is found at 1.15850 (19/10/2017 high) while strong resistance at 1.1833 (15/01/2018 high) remains. Hourly supports are given at 1.14269 (04/10/2017 low) and 1.1388 (02/10 2017 low).
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).
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