Dukascopy Bank Team
Dukascopy Bank SA
EUR/AUD 4H Chart: Channel Up
Comment: Several days after a test of the tough support at 1.38 and a subsequent strong rally, the rate of Euro’s appreciation moderated, which allowed EUR/AUD to form a gently sloping channel between two reliable trend-lines.
Being that the currency pair right now is at the lower boundary of the channel, the outlook is positive both in the short and long terms. The bulls are expected to push the common currency away from 1.44 up to 1.47, where, apart from the trend-line, it is supposed to meet the weekly R1 and Oct 16 high. However, the technical indicators are mixed at the moment on all relevant time-frames.
GBP/USD 4H Chart: Channel Down
Comment: There seems to be emerging a downward-sloping channel on the four-hour chart of GBP/USD. The Sterling has just confirmed the resistance at 1.62 (falling trend-line, 200-period SMA, weekly R1), and the current decline is thus likely to extend some 150 pips through the nearest pivot points (at 1.6031 and 1.5935). The negative outlook is also reinforced by the ubiquitously bearish technical indicators.
In the meantime, we should be vary of the demand at 1.5870, which is not only the Oct 15 low and a two-month down-trend, but it also proved to be a significant level in the last quarter of 2013.
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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