Dukascopy Bank Team
Dukascopy Bank SA
EUR/USD 1H Chart: Broadening Rising Wedge
Comment: After a sharp decline on the 3rd of October, EUR/USD found a support at the major level at 1.25. Since then the pair has formed a broadening rising wedge pattern.
At the moment, the currency pair is trading around the lower boundary of the pattern. If the lower trend-line will hold the pair’s bears back then a repeated test of the 1.28 level is possible. However, there are certainly down-side risks. The hourly and daily technical studies are pointing downwards, therefore increasing the bearish risks. At the same time the traders’ sentiment is more or less neutral with 53.29% of them expecting a rebound. For bullish traders the monthly PP and weekly R2 is the target.
AUD/NZD 1H Chart: Double Top
Comment: At the second part of September AUD/NZD reached the lowest trading level since July at 1.0920. However, at these levels the pair received a bullish impetus that pushed the pair towards the 1.13 level, forming a double top pattern.
Currently, the pair is hovering slightly above the pattern’s neckline at 1.1121. Since this is a bearish pattern in the base scenario, we should see a drop below the neckline towards the 1.10 level. However, the market participants disagree with this argument, as 69.42% of them are bullish on the pair. Very important gauge will be around the weekly S1 and daily S2. If these supports holds then we might see a bullish movements in the near-term.
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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