By Forex Signs, Inc.
The USDCHF pair has been playing the same trend movement at H1 chart since the start of the week aside from Tuesday; it eventuates a bullish breakout at the middle of the day then goes down a few pips back before the trade ends. However, Tuesday’s sudden downward reversal may have been just a correction to a week-long upward trend with resistance of 0.9913. At the time of writing, the pair is moving sideways at H1 chart with resistance level of 0.9842 and support of 0.9832. The pair is expected to pursue a bullish trend after it touches support line. However, Bill Williams’Alligator at H1 chart indicates that the trend is bearish. The jaw, teeth, and lips are appropriately aligned. Yet despite a strong signal of selling the pair, %R (14) had a reversal from touching an oversold momentum going neutral. Having said this, there is still a possibility that the trend for today will just repeat yesterday. Chances are, at any point sooner, the trend will breakdown into a bullish momentum.
GBPCHF Testing 1.5516
GBPCHF has not made any significant technical move yesterday. Looking at the medium term chart, price action remains in consolidation at the immediate support level of 1.5472 and immediate resistance level of 1.5516 within the bearish channel. Currently, price action is testing the immediate resistance level. Trading bias, in the medium term chart, remains on the downside particularly if the price was able to break below immediate support level targeting 1.5408. On the other hand, a break above immediate resistance level could trigger a minor correction. However, if price breaks the 1.5592 level above the bearish channel, this might signal a bullish reversal. RSI (14) for the medium term chart shows price is within neutral territory, suggesting that price momentum may go both ways.
American Session Outlook
The American session currencies, particularly the US dollar made an impact against their European and Asian counterparts in yesterday’s trade. The bullish breakout of the Greenback is most likely because of the positive outcome of their weekly Jobless Claims. The number of U.S. workers filing new applications for unemployment benefits fell by 17,000 last week to 421,000, the Labor Department reported yesterday. However, the Greenback was not able to hold its momentum; it went a few pips lower then alleviated there. This movement may partially be influenced by speculations that the US treasury market is starting to normalize. Since the start of October, the yield on the 10-year note has jumped nearly 100 basis points to around 3.25% this week. The US dollar could have possibly taken a beating but then again, it was supported by the report of Unemployment Claims.
In the meantime, the Canadian dollar played sideways against its major trading pairs apart from the euro. EURCAD dropped 119 pips at H1 chart during the first 3 hours of the trading then recovered just before the session ended. However, the pair moved sideways at 38.2 percent of Fibonacci retracement. The performance of CAD against EUR may have been influenced by the selling of crude oil to Europe.
At today’s trading session, the Greenback is expected to advance as Bureau of Economic Analysis is set to release data regarding Trade Balance. Trade deficit in US has probably changed a bit in October as export rose and dollar weakened. Other reports show that Consumer Confidence may have climbed this month and the cost of imported goods rose at a slower pace in November. If trade balance reaches forecasted value or more then the Greenback is most likely to sky-high today. Meanwhile, the Loonie is expected to perform the same because its forecasted trade deficit is higher by 0.5B than previous.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
