Daily Market Report – USD/CHF bounce or break? July 13, 2017


USD/CHF – breakout attempt

The currency pair is trading in the green ahead the US figures, we’ll see how will react after the numbers will be released. We’ll have a high volatility later, after the US data, that’s why you should be careful not to suffer a heavy loss.

We have a rebound on the USD/CHF, but a further increase will come only if will have enough energy to take out an important dynamic resistance. The greenback needs support from the US economy today so we can take the lead on the short term. USDX moves sideways on the short term, right above the 95.45 previous low, an accumulation movement will bring another leg higher, but right now is premature to say what will happen because the fundamental factors could ruin everything.

Price bounced back from the outside sliding line (sl) and now is pressuring the inside sliding parallel line (sl), only a valid breakout above this level will attract more buyers on the short term. Remains under selling pressure on the Daily chart as long as is trading within the descending pitchfork’s body.

Is somehow expected to decrease further after the breakdown below the ascending sliding line (SL), major support could be found at the 0.9498 and lower at the 0.9440 level. USD/CHF moves sideways on the long term, is trapped within an extended range, the corrective phase could end soon if the behavior will change (if will make higher lows).

Is better to stay away from this pair because we don’t have trading opportunity, the perspective remains bearish, personally I’ll wait for a reversal sign, hoping to catch an upside movement right from the bottom.

USD/CAD undecided ahead US numbers

The Loonie appreciated versus the USD in the morning, but now has lost some ground versus its major rival, we’ll see what the US data will bring. We may have some volatility in the upcoming hours, you should keep an eye on the economic calendar later to see what will move the price.


Price dropped more than 230 pips in the yesterday’s session after the BOC decision to hike the interest rate with 0.25% for the first time in the last 7 years. USD/CAD plunged much below the lower median line (LML) of the major descending pitchfork and found support only at the 1.2678 static obstacle.

The pair squeezed and closed much above the 1.2678 level and above the third warning line (wl3) of the former ascending pitchfork, a rebound could come only after the breakout above the median line (ml) of the minor descending pitchfork.

EUR/JPY challenging crucial support area

EUR/JPY is into a corrective phase and is pressuring an important support level, maintains a bullish perspective as long as is located somewhere above the 128.50 psychological level.


We had a breakdown below the upper median line (UML) of the major ascending pitchfork today, but this could be a false one and the rate will increase again. Has retested also the 38.2% retracement level and the median line (ml) of the ascending pitchfork. The outlook is bullish as long as is trading above these levels, because a breakdown below this confluence wil accelerate the sell-off.

By Olimpiu Tuns

Market Analyst

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