Today we analyze two special forex pairs for you. EURJPY and USDCHF. We are going through a critical period in the world’s monetary history. It seems that USD is bound to lose its dominating position. You simply can’t keep the reserve status and print billions at the same time.
The European Central Bank’s policy is less expansive, however, the political future of the EU is uncertain. In this case, both Japanese Yen and Swiss Franc can take over some of the global reserve currency pie.
Having all this in mind, let’s take a look at the most intriguing forex trading opportunities this week.
The current USDCHF structure shows a downtrend that moves within the green channel.
After the last rebound of the price from the lower green line, the bulls brought the market to the middle of the channel, after which they weakened and lost their positions. The price began to fall. This section describes a small yellow channel.
If the bears bring the market to the lower green line and can break through the support level of 0.875, which is on it, the price will fall to the lower level of 0.868, located on the lower yellow wall.
However, an alternative scenario is possible, where the bulls will again try to take over the market. With a successful break of the yellow upper line near the resistance level of 0.882, our assumption may be confirmed, and we will see the growth of the currency pair in the direction of the upper green wall and the resistance level of 0.895.
The EURJPY currency pair is moving in an upward direction within the green channel.
In December 2020, the price pushed off from the upper green line, and we saw a sideways movement of the market, which describes a horizontal yellow channel with a downward slope.
At the time of writing, the market is located in the lower zone of the green channel and the center of the yellow channel.
There is a possibility that the gradual decline in the price will continue and if the bears can break through the lower wall of the green channel near the support level of 125.82, the price can reach an even lower support level of 125.34, which is on the lower yellow line.
However, we can not exclude the option in which the bulls will lead the market up. If they touch the upper yellow line and can break through the resistance level of 127.16, then they will have a clear path to the upper green line and the next important level of 129.36.