GBP/AUD 1H Chart: Rectangle
Comment: The pair is trading in the boundaries of rectangle pattern since the middle of July, recently touching the resistance line at 1.8191. Inside this longer term pattern recently formed a short term double top pattern (from 7th to 8th August), since then GBP/AUD has weakened. Nonetheless, after the current consolidation the pair should decline further towards the rectangle’s support, weekly and monthly S1 at 1.7985/76. The shorter term (1H and 4H) technical studies are neutral; however, the daily technicals are to the downside. Therefore, a decline towards 1.80 is likely; although, there is also a possibility that we could see a break-out towards the 1.79 mark.
AUD/CAD 4H Chart: Broadening Falling Wedge
Comment: At the moment the pair is fluctuating around the upper trend line of the Broadening Falling Wedge pattern that formed at 14th of May. In the perfect scenario the break-out should be to the upside in this case; however, we expect to see at least one more bearish wave as the pair rebounded from the down-trend resistance recently. The strongly bearish sentiment (71% of the traders expect the pair to decline) also strengthens the scenario, where the pair weakens. Nonetheless, the pair’s bears will have to do their best to drag AUD/CAD below the cluster of support levels (weekly S1, 200-perios SMA and monthly PP at 1.0113/1.0093) slightly lower.
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.
Recommended Content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.