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.
Recommended Content
Editors’ Picks
EUR/USD turns negative near 1.0760
The sudden bout of strength in the Greenback sponsored the resurgence of the selling pressure in the risk complex, dragging EUR/USD to the area of daily lows near 1.0760.
GBP/USD comes under pressure and challenges 1.2500
GBP/USD now rapidly loses momentum and gives away initial gains, returning to the 1.2500 region on the back of the strong comeback of the US Dollar.
Gold retreats from highs on stronger Dollar, yields
XAU/USD trims part of its initial advance in response to the jump in the Dollar's buying interest and the re-emergence of the upside pressure in US yields.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Week ahead – US inflation numbers to shake Fed rate cut bets
Fed rate-cut speculators rest hopes on US inflation data. After dovish BoE, pound traders turn to UK job numbers. Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start.