Hello everyone! Last week, I posted my technical analysis on the USD/PHP forex pair and mentioned that it had broken out from a cup and handle formation with a minimum target price of 42.30 after speculative buying on the greenback (kindly check here). I based my target on the height of the chart pattern and added to the breakout point. Also, the 42.30 marker intersects the 9-year downtrend which is a major obstacle for the currency pair.
The USD/PHP could have bounced off the 42.30 target and continue its down-course, however, it did not. In fact, the 8-year downtrend has been broken and the pair is currently hanging at the 42.46 resistance. If the rise carries on and breaks the current hurdle, the next resistance could be 42.86 and then 43.95. On the downside, the current support could be the 8-year downtrend line and then 42.06.
Personally, if you look at the monthly chart of the USD/PHP, the breakout from the 8-year downtrend doesn’t look convincing yet unless the 43.00 price-mark gets broken. I’m a bit biased on this so let’s just see how this goes in the next few weeks.