Dukascopy Bank Team
Dukascopy Bank SA
EUR/CAD 4H Chart: Channel Up
Comment: If we analyse the last 180 bars on the four-hour chart of EUR/CAD, we may come to a conclusion that the currency pair is currently forming a bullish channel. Given that this supposition is true, the Euro should turn around before hitting the long-term moving average, namely at the up-trend support line at 1.5353, which is presently reinforced by the daily and weekly S1 levels. Then the price will be well-positioned to target 1.5653, where it will supposedly encounter the upper boundary of the pattern and begin another bearish correction. However, the market does not seem to be optimistic at the moment—merely 40% of the traders are holding long on EUR/CAD positions.
AUD/CHF 1H Chart: Channel Up
Comment: During the last 100 hours the Australian Dollar has been generally outperforming the Swiss Franc, which resulted in emergence of an upward-sloping channel. This implies the support and resistance areas at 0.8086 and 0.8148 respectively. However, the latter level is currently being tested and it needs to prevent additional appreciation of the Aussie in order to confirm validity of the pattern. In this case AUD/CHF will be expected to retreat back to the weekly R1 before starting another bullish leg. Alternatively, the pair may close above 0.8148, which would suggest continuation of the rally, potentially up to the weekly R3 level at 0.8258.
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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