USD/CHF: Downside Possible
The swissie is in a falling wedge pattern with indications of more downside from sentiment extremes and new lows. This could target first 0.9370 at the lower line of the wedge and the level of the 50-day MA, and then if there is a breakout from the pattern lower to 0.9190. A break out above the wedge, on the other hand, could reach 0.9700 level.
The EUR/JPY is trading in a box-formation with a breakout move on the horizon. It has just rallied off the lows and gone back up into the range. A break above 101.10/20 would be a strong sign of a move higher targeting 102.25 initially and then potentially the H&S neckline at 103.25. A break below 98.65 on the other hand would target 97.90 first and then possibly 96.95 eventually.
The pair is still climbing within a channel. It will probably continue higher and possibly re-touch the 1.2750 highs, or even the upper channel line at 1.2790. If there is a fall back down then the monthly pivot underpins support at 1.2660, although a breach of that would probably lead to a move down to the lower channel-line at 1.2615.
Analysis By: Forex4you Analyst - Arkady Nagiev.
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