Dukascopy Bank Team
Dukascopy Bank SA
EUR/CHF 1H Chart: Channel Down
Comment: EUR/CHF is a ‘sell’ at the moment, being that the pair has formed a bearish channel. The upside is limited by a combination of the falling resistance line, May 25 high, and daily R1 at 1.0390, which may prove to be a good level for an entry. The immediate support level is at 1.0356, but the bears are unlikely to let go of the pair before the price falls to 1.03 francs, where EUR/CHF is to meet the lower boundary of the pattern. In the meantime, the SWFX market participants appear to be undecided with respect to the Euro, as 47% of open positions are long and 53% are short, meaning the overall sentiment is neutral. At the same time, only four-hour technical indicators support a bearish scenario.
AUD/USD 1H Chart: Channel Down
Comment: The bears have recently proved their might by breaking through the major up-trend (connects Apr 14 and May 11 lows), which was reinforced by the long-term moving average. Accordingly, the bias towards AUD/USD is negative, at least until we descend down to the April low at 0.7534. However, there is an increased chance of a rally in the very short run, since the currency has just confirmed support at 0.7730 (weekly S1 level and down-trend). This advancement should be stopped by resistance at 0.7814, where the daily R1 merges with the upper edge of the channel. As for the present attitude of the SWFX market, a majority of traders is long the Aussie, namely 70% of them.
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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