Dukascopy Bank Team
Dukascopy Bank SA
CHF/JPY 1H Chart: Channel Down
Comment: The Swiss Franc failed to consolidate at a one-month high of 177.73 against the Japanese Yen in the very beginning of April. After that, CHF/JPY succumbed to a downside pressure and entered a steep bearish channel.
At the moment, the pair is on the brink of breaking out of the tunnel since it is sitting on the upper boundary of the 72-bar long pattern and may try to surpass this formidable resistance before long. The SWFX data indicates that the proportion of long positions is around 65%. However, technical signals point to a possible depreciation, sending ‘sell’ signals for short and medium term.
AUD/USD 1H Chart: Triple Top
Comment: Since early February, the Australian Dollar has been in the up-trend against its U.S. counterpart; however, formation of the triple top pattern started only in the second part of March when the pair sped up the pace of appreciation.
Now AUD/USD is demonstrating its unwillingness to move to the neck-line at 0.9212, below which a deep sell-off is likely to be in place. The pair used the level of 0.9272 (50-hour SMA) as a prop to rally to the daily resistance at 0.9290, which is not likely to stop the advance as over 70% of traders are bullish on the pair.
GBP/AUD 1H Chart: Channel Down
Comment: After a jump to a three-year high of 1.9191, the British Pound has been mainly depreciating versus Aussie and in mid-March the pair embarked on formation of the channel down pattern that now is almost 300-bar long.
Right now the pair may represent an opportunity for traders as it has recently dropped below the 50-hour SMA, below which a sharp decline is likely to take place. This is further bolstered by absence of any significant support levels until 1.7856/2 (four-hour S3, daily S1) as well as by market sentiment-almost 70% of market participants are bearish on the pair.
USD/SGD 1H Chart: Descending Triangle
Comment: USD/SGD shaped a 330-bar long descending triangle pattern on the one-hour chart. While trading within the bearish formation, the pair faced noticeable losses, erasing more than 200 pips during the last two weeks of March. Now the instrument is sitting not far away from the pattern’s support at 1.2577; however, the breakout now seems unlikely as more than 80% of all orders at the SWFX are placed to buy the pair. Moreover, the pair is trading at some distance from the apex, which will be reached on April 14. At the same time, technical data indicates that bears are likely to dominate the market in both short and long terms.
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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