GBP/AUD 1H Chart: Channel Up
Comment: GBP/AUD is currently trading within the boundaries of a bullish channel, which means further appreciation of the Sterling. At the moment, however, the currency pair is undergoing a bearish correction, and the sell-off may extend down to 2.1350 before we see a new rally. Nevertheless, despite the outlook implied by the pattern and the technical indicators, recovery in the longer term is under question, mainly because of the emerging falling resistance trend-line at 2.15. But if it is broken to the upside, the next target should be the mid-November high at 2.1575. Meanwhile, another positive sign for the Pound is the fact that the currency is heavily oversold—72% of positions are short.
EUR/NZD 4H Chart: Channel Up
Comment: After a strong Sep-Oct sell-off the Euro is showing signs of recovery. Right now EUR/NZD is forming an upward channel, and the pair seems capable of advancing higher. The immediate obstacle is 1.66, but the main challenge for the bullish momentum is waiting circa 1.67, represented by the rising resistance line, 200-period SMA and monthly PP. In the meantime, near-term dips are to be limited by the trend-line at 1.6370. If this support is violated, however, there will still be a good chance for the bulls to recuperate at 1.6228, where they were able to halt the Sep-Oct decline. As for the SWFX market, the sentiment is neutral: 49% of open positions are long and 51% are short.
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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