Dukascopy Bank Team
Dukascopy Bank SA
GBP/JPY 1H Chart: Rising Wedge
Comment: After reaching the monthly S1 at 181.60 on 16th of December the pair started to from a falling wedge pattern, as a bullish impetus was received near the level.
The trading range is narrowing and thereby the possibility of a break-out is increasing. Although, the SWFX traders’ sentiment is neutral for the time being with 52.42% of them having opened short positions. Meaning that the pair might re-test the major level at 190 or slide towards the 182 level once again. However, the 4H technical studies are pointing strongly to the upside, suggesting that the possibility of a bullish break-out is bigger than of a bearish one.
AUD/CAD 4H Chart: Broadening Falling Wedge
Comment: The Australian Dollar has been outperformed by the Canadian peer already since early September. However, this broadening falling wedge pattern started to form, after a period of consolidation through October.
The bearish pressure is not increasing anymore and with the low volatility the probability of continuous decline is getting smaller. Nonetheless, the 4H technical studies are still bearish, thus the chance of seeing the pair even lower is still here. Moreover, for a rebound the pair has to breach the weekly PP and monthly S1 at 0.9512/27 and it will not be an easy task, especially since the market participants are neutral.
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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