Dukascopy Bank Team
Dukascopy Bank SA
AUD/USD 4H Chart: Channel Down
Comment: Following a 20-day upward correction AUD/USD once again finds itself under strong downward pressure. The bears forced the pair to extend the decline from 0.94, where the Aussie traded five months ago. Given that the price has formed a downward-sloping channel and most of the technical indicators point south, the risks are heavily skewed to the down-side.
However, in the near term we expect a rally, being that AUD/USD has just encountered the lower boundary of the pattern, meaning there is a good chance the rate will recover up to the upper falling trend-line at 0.79 before targeting 0.7650.
AUD/NZD 4H Chart: Channel Up
Comment: Although the Aussie is underperforming the Buck, the currency managed to stay within the boundaries of a bullish channel against the Kiwi unlike in the AUD/USD pair. Provided that the rising support at 1.0660 stays intact, AUD/NZD will be in a good position to advance beyond the Jan 28 high at 1.08 and reach the upper edge of the channel at 1.0870, from where we can expect a sell-off. Nevertheless, a majority of weekly studies gives ‘sell’ signals, suggesting the up-trend is going to give in. In this case the price will likely fall down to 1.0350 in the next few weeks and will probably keep moving south afterwards, as the recovery started at the beginning of January will no longer be topical.
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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