Dukascopy Bank Team
Dukascopy Bank SA
EUR/AUD 4H Chart: Channel Up
Comment: EUR/AUD has formed a well-developed channel pattern on its way up to the 1.4914 which corresponds to the August 2 high. The currency can be expected to bounce off the lower trend-line, just to continue its path northwards. If the pair breaks the aforementioned resistance, it will encounter several intermediate levels, such as the upper Bollinger Band and daily R1 cluster at 1.4920/2, which it will test and in case of a breakout, a rally towards the upper trend-line along with weekly R1 can be expected. Also, technical indicators give out BUY signals on a 4 hour and daily basis, and the SWFX sentiment index shows a majority of traders being short on the currency suggesting it to be oversold.
CHF/SGD 30M Chart: Channel Up
Comment: Bound by an ascending channel pattern, CHF/SGD has just bounced from the bottom trend-line, giving little reason to doubt trend continuation. According to the pattern, the pair will once again rally towards the upper trend-line at 1.4061, however, this might not be the case, as, in addition, a triangle that has been prevailing since last week, implying that the currency might not break the upper trend-line of the triangle at 1.4054, causing the rate to slump back down after the test. While there are strong arguments in favour of the continuation of the prevailing trend, daily indicators fail to give insights into the matter.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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