EUR/USD 1H Chart: Channel Down

USD/CAD 1H Chart: Channel Up

Comment: A dive to a 10-month low of 1.0620 in the very beginning of July provoked a long-lasting appreciation of the greenback versus the loonie performed within the area bounded by two parallel upward-sloping lines.

The pair now is located near the lower trend-line and may remain there as the 50-hour SMA at 1.0739 is blocking the upswing, while the pattern’s support is preventing the pair from a bearish exit. Meanwhile, traders’ sentiment on the SWFX is almost neutral – 53% of positions are long, while 47% are short. Furthermore, technical indicators send a clear signal only for long-term, pointing to a possible climb in one-day perspective.

EUR/USD 1H Chart: Channel Down

Comment: The most popular currency pair, EUR/USD, has been in a sharp down-trend since mid-July and on Jul 18 the instrument hit a five-month low of 1.3492 located at the lower limit of the 136-bar long channel down pattern. After bottoming out at the this low, the pair managed to pare losses and now is fluctuating near the short-term SMA at 1.3524. If the pair prolongs its winning streak, it is likely to attain the upper trend-line of the formation, a jump above which may lead to a breakout. However, market players are not so confident in pair’s ability to perform a rally – only 53% of all orders are placed to buy the pair.

XAU/USD 1H Chart: Triangle

Comment: A four-month high of 1,345.61 reached in the first part of July forced the shiny yellow metal to perform a rapid retreat. After the decline, the bullion was trapped by a short, only 52-bar long, symmetrical triangle, inside which XAU/USD to has been trading in a narrowing range.

At the moment, the proximity of the apex supports the idea that gold has exited the triangle in earnest and a notable drop may lie ahead. At the same time, market players do not expect a sell-off to happen, being bullish in more than 72% of cases, according to the SWFX data.

EUR/GBP 1H Chart: Triangle

Comment: EUR/GBP has transformed a channel down pattern examined a day earlier into a symmetrical triangle and now the instrument is on the brink of an accelerating decline that often follows a bearish exit this type of patterns. The SWFX numbers prop up this view– two traders out of three hold short positions, meaning EUR/GBP may plunge below the 50-hour SMA and four-hour S1 at 0.7918/7 that act as a strong support zone. If overcome, the short-term SMA may push the mark of 0.7915/3 (four-hour SS2, S3; daily S1) to the fore, below which only two levels – 0.7905 (daily S2) and 0.7898 (daily S3) are capable to stop the downswing.