Dukascopy Bank Team
Dukascopy Bank SA
EUR/AUD 4H Chart: Triangle
Comment: EUR/AUD is about to break out of the symmetrical triangle, which should lead to increased volatility in the near term. If the price jumps above the upper trend-line at 1.5650, we will expect an extension of the rally towards 1.5825, where the weekly R1 merges with the last week’s high and 200-period SMA. Additional resistances are at 1.5929 (monthly PP) and at 1.6250 (monthly R1 and Sep high). Alternatively, if the value of the Euro falls below A$1.56, the sell-off is likely to go on until the rate falls down to 1.54. At the same time, a close beneath 1.5279 will imply a decline to the Aug low at 1.50. Meanwhile, there is no consensus in the market: 53% of open positions are long and 47% are short.
AUD/USD 4H Chart: Triangle
Comment: As it turned out, AUD/USD did not exit the triangle against the background of the RBA meeting minutes published yesterday. Still, the pair is at the very apex of the figure, meaning we should soon see a spike in the turbulence of the market. Because the pair formed the pattern after a rally, the base scenario is a bullish break-out with the main target at 0.7380 (weekly R1 and Oct 12 high). If this is not the case and the up-trend at 0.7265 fails to stay intact, the next support will be at 0.7235, represented by the monthly R1 and Oct 18 low. An additional demand area should be at 0.7190 (weekly S1 and Oct 13 low). As for the SWFX sentiment, 72% of the traders are currently long.
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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.