EUR/JPY 1H Chart: Falling Wedge
Comment: EUR/JPY has been on a down-trend since the middle of September, when the pair failed to consolidate above the 141 mark. Since the pair could not find a bullish impetus it was forced to enter a downward trend.
At the moment, the pair is challenging the upper trend-line of the pattern. At the same the 4H and daily technical indicators are pointing to the south, thus suggesting that the bearish trend is likely to continue. Additionally, the previous minor low was also this year’s low. We expect the pair to decline towards the 135 level once again, after approaching pattern’s resistance at the 136 mark.
EUR/AUD 4H Chart: Channel Up
Comment: The EUR/AUD cross gained momentum, after reaching the lowest level in more than a year at 1.3799. Moreover, at this level the pair received a bullish impetus that helped to form a bullish channel.
Currently, the pair is trading around the major level at 1.45, while the technical indicators are mixed. To our mind a bearish break-out is the most likely scenario, as the pair is already trading around the lower boundary for more than a week. Also, the traders’ sentiment is to the downside, as 66.34% of them have opened short positions on the pair. The next key targets for bears are 100-period SMA and daily S1; however, if they hold then we will have to wait a little longer for the break-out.
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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