Dukascopy Bank Team
Dukascopy Bank SA
AUD/CHF 1H Chart: Channel Down
Comment: AUD/CHF has recently broken through the support trend-line that has been guiding the currency pair since Oct 21. Accordingly, the outlook towards the Aussie is now negative, especially considering the emerging bearish channel. The price is expected to pierce through the 200-hour SMA and Nov 9 low and start an upward correction only in the region of 0.7030. The near-term gains are to be capped by the upper boundary of the pattern, but in case 0.71 is breached, the first target will be the violated trend-line at 0.7120, followed by the Nov 4 high and weekly R1 at 0.7170. As for the sentiment, three out of four SWFX traders are currently holding long positions.
AUD/USD 4H Chart: Channel Down
Comment: AUD/USD is presently forming a bearish channel. However, while we are more or less confident in the ability of the upper trend-line to contain rallies, especially considering that at the moment it is reinforced by the monthly PP and 200-period SMA, there are considerably less reasons to believe that the lower trend-line will be able to trigger a notable upward correction. Nevertheless, the base scenario is a short-term recovery from 0.7015 to 0.7170/50, after which a sell-off should ensue, although a close above 0.7170 will imply extension of the rally to the October high at 0.7380. In the meantime, the SWFX market is overbought to a great extent, being that 75% of open positions are 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 fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold stays in consolidation above $2,300
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.