Technical FX: EUR/GBP Bullish Momentum Builds
Swissquote Ltd | Nov 24, 2017 11:35
EUR/USD is pushing higher. Hourly resistance is located at 1.1878 (12/10/2017 high). Hourly support is given at a distance at 1.1554 (07/11/2017 low). Expected to show continued increase.
In the longer term, the momentum is now turning largely positive. We favour a continued bullish bias. Key resistance is holding at 1.2252 (25/12/2014 high) while strong support lies at 1.0341 (03/01/2017 low).
h3 GBP/USD Monitoring resistance at 1.3338/h3GBP/USD has broken 1.3230 resistance indicate an extension of bullish momentum. Support is given at 1.3027 (06/10/2017 low). Expected to show continued increase towards stronger resistance at 1.3338 (13/10/2017 high).
The long-term technical pattern is reversing. The Brexit vote had paved the way for further decline. Long-term support can be found at 1.1841 (07/10/2017 low). Long-term resistance given around 1.35 is at stake and indicates a long-term reversal in the negative trend. Yet, it is very unlikely at the moment.
h3 USD/JPY Ready for another downside move/h3USD/JPY has broken short-term uptrend channel and strong support located at 111.12 (20/09/2017 low). The road is wide open for further decline.
We favor a long-term bearish bias. Support is now given at 99.02 (10/08/2013 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).
h3 USD/CHF Consolidating/h3
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USD/CHF's technical structure is clearly bearish. The technical structure indicates further downside risks. The pair has failed to hold consistently above the parity. The road is wideopen for further decline.
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 0.8986 (30/01/2015 low). The technical structure favours nonetheless a long term bullish bias since the unpeg in January 2015.
h3 USD/CAD Sideways price action/h3USD/CAD has failed to clear resistance indicating downside risks. Hourly resistance can be found at 1.2837 (21/11/2017 high). Hourly support lies at 1.2667 (10/11/2017 low). Expected to show bearish pressures.
In the longer term, the pair has broken longterm support that can be found at 1.2461 (16/03/2015 low). Strong resistance is given at 1.4690 (22/01/2016 high). The pair is likely to head further lower.
h3 AUD/USD Riding downtrend channel/h3AUD/USD is ready to go even lower showing that downside pressures are still lively. Hourly resistance is given at a distance at 0.7897 (13/10/2017 high). Expected to show renewed pressures towards key support at 0.7535 (22/06/2017 low).
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.
h3 EUR/GBP Bullish momentum builds/h3EUR/GBP has broken rising trendline, yet technical structure suggests further short-term bullish momentum. Hourly support is given at a distance at 0.8733 (01/11/2017 low). Next resistance is located at 0.9014 (27/10/2017 high).
In the long-term, the pair has largely recovered from recent lows in 2015. The technical structure suggests a growing upside momentum. The pair is trading above from its 200 DMA. Strong resistance can be found at 0.9500 (psychological level).
h3 EUR/CHF Buying demand/h3EUR/CHF is trading slightly higher between resistance at 1.1711 and support given at 1.1610 (27/10/2017 low). Expected to show continued sideways move.
In the longer term, the technical structure has reversed. Strong resistance is given at 1.20 (level before the unpeg). Yet, the ECB's QE programme is likely to cause persistent selling pressures on the euro, which should weigh on EUR/CHF. Supports can be found at 1.0184 (28/01/2015 low) and 1.0082 (27/01/2015 low).
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