USD/CHF Falls

The USD/CHF has been falling for the rest couple of weeks as the pair reached the overbought level just a few pips above parity. The exchange rate fluctuated around parity for days before breaking the trend to the downside.

The pair is now trading at 0.9862 with a low of 0.9845. Next bear target could be the 50SMA standing at 0.9799, second target is the 200SMA which could present a challenge for the bears at 0.9706.

Major bear target is seen at 0.9200 which could come if the US economy worsens, the stock market sells off and the interest rate goes higher.

Chart: USD/CHF D1

GBP/JPY Moves Higher

The Sterling saw a massive drop in its recent trading session and only yesterday the UK currency gained a bit traction to recover some of the losses. GBP/JPY moved higher in the last two trading days going from a low of 143.20 to a high of 145.30.

Currently, the pair is trading at 145.06, slightly lower than today's high. The pair reached a strong support zone on Tuesday when it touched on the lower line of the ascending long term trading channel.

We are yet to see whether the support will hold as the short term trend is aggressively bearish, the MACD still has room to go and the 200SMA is way above current market price.

Chart: GBP/JPY D1

GBP/USD Aims Lower

The British pound has been depreciating against its peers recently as the UK economy has been posting lower than expected results as well as dovish tone from the BoE regarding future developments.

The GBP/USD exchange rate went as low as 1.3205 in yesterday's session and is now trading slightly higher at 1.3236 with intraday high of 1.3292.

If the Sterling continues its way South we can expect the pair to reach medium term support zone at 1.3070. If that level holds strong, bulls would have the chance to make a correction of the trend and end the aggressive downfall that started in mid April.

Chart: GBP/USD D1

EUR/USD Aims To Lower Grounds

The EUR/USD is now trading below 1.17 as selling pressure is pushing the exchange rate down. The strengthening of the US dollar is causing all other peers to depreciate resulting in high volatility swings.

The EUR/USD rate reached a low of 1.1606 and is now trading at 1.1629 as bears are still the dominating party. Immediate support rests at 1.1550 and if bears manage to break through it we can see further continuation of the downside move.

On the other hand, bulls might get motivated to buy the pair if it reaches the support zone and we could see a healthy pullback.

Chart: EUR/USD H4

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USD/JPY Higher

The USD/JPY pair is trading above 111.00, a level that acted as a resistance prior to breaking it. Now that level is a resistance turned support and next level the bulls need to conquer is the long term downtrend upper point of 111.90.

If that level is reached, we can expect a healthy pullback which would act as a correction to the solid US dollar rally against the Japanese Yen that started in the end of March from 104.65.

The pair is now well over the most important SMAs, namely 50, 100 and 200 but is yet to see the highs of the overbought levels in the MACD and RSI indicators.

Chart: USD/JPY D1

GBP/USD At 5 Month Low

The Sterling continues it's bearish run as the exchange rate GBP/USD has fallen below the 5 month level. The pair is now trading around 1.3400 marking a 14 cent depreciation in a little more than a month.

The drastic drop is due to a dovish UK tone regarding economics and even more of a reason, the strengthening of the US currency. The US dollar has been plowing through all major pairs making new highs.

According to some hedge fund managers and currency experts, the US dollar rally is far from over and we are yet to see it unfold.

Chart: GBP/USD D1