- During the Asian session this morning, the USDCHF traded in the range of 0.86500-0.86700.
- USDJPY managed to stabilize and recover from the drop at the beginning of the week.
USDCHF Chart Analysis
During the Asian session this morning, the USDCHF moved in the range of 0.86500-0.86700. As we approach the American session, the pair is starting to pull back and put pressure on the support line of the current range. If we see a push below it, it will reinforce the bearish outlook and put pressure on the USDCHF to continue on the bearish side. Possible lower targets are the 0.86200 and 0.86000 levels.
The pair might find additional support at the 50 EMA moving average at 0.86300. In case the pullback continues, we do not rule out testing the weekly opening price of 0.85800. For a bullish option, we need a bullish USDCHF momentum above the 0.86800 level. With such a move, we are heading for a new weekly high and the chances of a continuation on the bullish side are increasing. Possible higher targets are the 0.87000 and 0.87200 levels.
USDJPY Chart Analysis
USDJPY managed to stabilize and recover from the decline at the beginning of the week. Yesterday, we were back above the weekly opening price for the second time. During the Asian session this morning, the USDJPY movement occurred in the range of 146.80-147.80. In the European session, there has been no change in the movement and it has continued with sideways consolidation. We have support from the EMA 50 moving average and we expect its help to move to the bullish side.
Potential upside targets are the 148.00 and 149.00 levels. An additional resistance to our advance to the bullish side could be the 200 EMA moving average. For a bearish option, we need a negative consolidation and a drop to the 146.00 level. With such steps, we go down the 50 EMA moving average and the weekly opening price. By turning to the negative side, the bearish momentum for further decline is growing. Potential downside targets are the 145.00 and 144.00 levels.
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