Dukascopy Bank Team
Dukascopy Bank SA
EUR/CHF 4H Chart: Two scenarios likely
The EUR/CHF currency pair continued to trade downwards within the falling wedge pattern.
From a theoretical point of view, it is likely that the exchange rate could decline within the given pattern within the following trading sessions. Then, a breakout north could occur, and the rate could target the Fibo 23.60% at 1.0861.
Meanwhile, note that the currency pair is pressured by the 55-, 100– and 200-period moving averages in the 1.0695/1.0740 range. Thus, some downside potential could continue to prevail in the market.
EUR/HUF 4H Chart: Bears could prevail
As apparent on the chart, the EUR/HUF exchange rate breached the rising wedge pattern south.
From a theoretical perspective, it is likely that some downside potential could prevail in the market. In this case the currency pair could target the Fibonacci 38.20% retracement at 347.15.
In the meantime, note that the pair could gain support from the Fibonacci 23.60% retracement at 355.21. Thus, a reversal north could occur, and the rate could re-test the 368.25 mark.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
Recommended Content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.