Sample Category Title

EUR/CHF's buying pressures are going up and the pair has broken resistance area between 1.1356 and 1.1472. The pair has also broken resistance at 1.1538 (04/08/2017 high). Expected to show continued bullish pressures.

In the longer term, the technical structure has reversed. Strong resistance is given at 1.20 (level before the unpeg). Yet, the ECB's QE programme is likely to cause persistent selling pressures on the euro, which should weigh on EUR/CHF. Supports can be found at 1.0184 (28/01/2015 low) and 1.0082 (27/01/2015 low).

EUR/GBP is weakening. The pair is having strong selling pressures.. However, as long as prices remain below the resistance at 0.9176 (declining trendline), the short-term technical structure is biased to the downside. Hourly support is given at 0.8719 (16/06/2017). Strong resistance lies at 0.9306 (29/07/2017 high).

In the long-term, the pair has largely recovered from recent lows in 2015. The technical structure suggests a growing upside momentum. The pair is trading above from its 200 DMA. Strong resistance can be found at 0.9500 (psychological level).

AUD/USD has broken support implied by the lower bound of the uptrend channel. Hourly resistance is given at 0.8125 (08/09/2017 high). Hourly support is given at a distance 0.7786 (18/07/2017 low). Expected to further weaken.

In the long-term, the trend is largely negative since 2011. Key supports stands at 0.6009 (31/10/2008 low) . A break of the key resistance at 0.8295 (15/01/2015 high) is needed to invalidate our long-term bearish view.

USD/CAD is edging higher. Hourly support is located at 1.2062 (08/09/2017 low). Resistance is now given at a distance at 1.2239 (intraday high). Expected to show continued short-term bullish pressures.

In the longer term, the pair has broken longterm support that can be found at 1.2461 (16/03/2015 low). Strong resistance is given at 1.4690 (22/01/2016 high). The pair is likely to head further lower.

USD/CHF keeps on bouncing higher. Strong resistance is given at 0.9808 (30/05/2017 high). The technical structure shows that the the pair is likely to head further lower below 0.9421 (03/05/2017). Expected to show renewed bearish pressures.

In the long-term, the pair is still trading in range since 2011 despite some turmoil when the SNB unpegged the CHF. Key support can be found 0.8986 (30/01/2015 low). The technical structure favours nonetheless a long term bullish bias since the unpeg in January 2015.

USD/JPY is pushing higher above 112.00. Strong support is located at 111.12 (20/09/2017 low). Expected to show further bullish pressures. Yet, downside risks are now rising as markets may soon take some short-term profit.

We favor a long-term bearish bias. Support is now given at 99.02 (10/08/2013 low). A gradual rise towards the major resistance at 125.86 (05/06/2015 high) seems unlikely. Expected to decline further support at 93.79 (13/06/2013 low).

GBP/USD is pushing higher after recent surge. Hourly resistance is given at 1.3657 (20/09/2017 high). Strong support is given at 1.2774 (24/08/2017 low). Expected to show continued bullish consolidation.

The long-term technical pattern is reversing. The Brexit vote had paved the way for further decline. Long-term support can be found at 1.1841 (07/10/2017 low). Long-term resistance given around 1.35 is at stake and indicates a long-term reversal in the negative trend. Yet, it is very unlikely at the moment.

EUR/USD lies in a bullish trend despite ongoing consolidation. Hourly resistance can be found at 1.2092 (08/09/2017 high) while hourly support lies at 1.1823 (31/08/2017 low). Stronger support is given at a distance at 1.1662 (17/08/2017 low). Expected to show continued bullish pressures.

In the longer term, the momentum is now turning largely positive. We favour a continued bullish bias. Key resistance is holding at 1.2252 (25/12/2014 high) while strong support lies at 1.0341 (03/01/2017 low).

The Aussie is in recovery mode after hitting fresh low of the month at 0.7907 in early hours of Friday's trading, in extension of Thursday's strong fall (the biggest one-day loss since 03 May). Fresh weakness of the greenback on renewed tensions over North Korea boosted the Aussie dollar for bounce from dangerous territory, as bearish extension on Friday approached strong support at 0.7890, provided by top of rising daily cloud.

Near-term studies hold bearish tone while are bearishly aligned following repeated strong upside rejection above 0.8100 and Thursday's break and close below main bull trendline at 0.8000 (the trendline is drawn from 0.7369, 02 June low). Current corrective rally would face strong barrier at 0.8000 (broken trendline/daily Tenkan-sen / 50% retracement of 0.8102/0.7907 downleg) which is expected to cap recovery ahead of fresh attempts lower.

Conversely, break and close above 0.8000 pivot would shift near-term focus higher again and signal higher low at 0.7907. Extension above 0.8028 (Fibo 61.8% of 0.8102/0.7907) is needed to confirm reversal.

Res: 0.7982, 0.8000, 0.8028, 0.8035
Sup: 0.7940, 0.7907, 0.7890, 0.7865

Chinese yuan to keep slipping on overdebtedness worries

Chinese equities ended lower for the second day in a row after Standard & Poor's stripped China of AA- rating. The Shanghai Composite fell as much as 0.90% over the last two days as investors dumped Chinese stocks in reaction to the rating agency to lower China's rating to A+ amid concerns over credit growth. Similarly, the tech-heavy Shenzhen Composite was off as much as 1.60% since Wednesday close but trimmed losses to 1.20% before the week-end.

Standard & Poor's justified its decision by saying that "The downgrade reflects our assessment that a prolonged period of strong credit growth has increased China's economic and financial risks." The need for China to deleverage its economy is no news; however the subject has kind of slip under the radar over the last few months as investors focused on the twists and turns of Trump and the Fed and ECB shifting towards further tightening. On Friday, in the wake of China downgrade, the rating agency cut Hong Kong's rating from AAA to AA+ saying that "We are lowering the rating on Hong Kong to reflect potential spillover risks to the SAR should deleveraging in China prove to be more disruptive than we currently expect".

Now that the Fed has finally triggered the process to reduce its balance sheet and that the ECB should at least reduce its quantitative easing program, investors will likely focus again on China and its massive debt problems. The yuan continued to lose ground against the USD with USD/CNY climbing to 6.60, up 2.45% from its multi-month low of 6.439. Further weakness of the yuan appears likely against the backdrop of potential further downgrade and mounting concerns about the level of indebtedness.

EUR/CHF reaches its highest level since January 2015

The EURCHF pair has reached its highest level since the floor was abandoned in January 2015. The pair has even reached 1.1620 CHF for one euro coin. The bullish move is mostly due because of the anticipation of the asset purchase program being reduced by the ECB in October. Bullish pressures are set to continue for the pair until then.

Major central banks (except the BoJ) are slowing moving towards further tightening and in particular balance sheet reduction. The demand for the euro currency is getting higher. However we remain suspicious about the euro strength within the medium–term.

For the time being, markets are buying the Eurozone decline in the unemployment rate, the fading threat of deflation, 1.5% y/y, and the continued growth. Anyway, we believe that all of this are on very fragile balance. European countries are sitting on massive debt and the current growth has only been obtained by massive injection of fresh cash. Any wise euro investors should be looking towards the Greek debt problem to be convinced that this won't end well. Anyway the single currency is likely to appreciate against the Swiss franc within the medium-term.