Dukascopy Bank Team
Dukascopy Bank SA
GBP/AUD 1H Chart: Channel Down
Comment: After reaching the highest level since March on 1st of October at 1.8686, the GBP/AUD cross started to decline. Moreover, recently the pair has formed a bearish channel.
Currently, the Pound is appreciating towards the upper trend line, that is located at 1.8278, of the pattern. Despite the hourly technical studies being strongly bullish, we stick more to the longer term ones, namely 4H and daily, that are distinctly bearish for the time being. At the same time, a slight majority (55%) of the SWFX traders’ expect the pair to reverse the recent losses, as they have opened bullish positions on the pair. We see the pair declining lower, after approaching the upper boundary.
USD/SEK 4H Chart: Broadening Rising Wedge
Comment: The US Dollar has outperformed the Swedish currency for most of this year, as since March the pair has been on a more or less constant up-trend. During this period many patterns have formed; however, currently we are seeing a broadening rising wedge pattern.
At the moment, USD/SEK has reached the highest trading level this year, also the highest level since September 2010. That, of course, might suggest that the pair is overbought for the time being. And according to the SWFX market participants that is what is happening in the market, as an overwhelming majority (73%) of them have shorted the pair, expecting for a bearish correction.
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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