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Weekly recap – Chart of the day by ForexAnalytix

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USDCHF Inverted Head and Shoulder Setup

In recent weeks the USD has been less reluctant to weaken against the CHF (compared with other G10 currencies) which may lead to an eventual inverted head and shoulder pattern in the event the .8825 level can hold on dips. This is near the December 17th 2020 low of .8822. The “neckline” is very clear at the .8925 level and if broken we should see a test of the key .9000 level once again.

GBPUSD forming a bullish wedge

Even though this is a bullish wedge developing on the daily chart, it doesn’t mean it will breakout higher, it is just that the odds favor an upside break than a downside one. Consistent highs and higher lows is developing the pattern currently which means a break of the 1.3700 level (sustained) or a break of the ascending trend line at 1.3580 would allow for the breakout near term. Above the 1.3700 level is a long term 78% Fibonacci retracement at 1.3760, and the 38% retracement of the December move higher comes in at 1.3519 which should be noted.

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