USD/JPY 1H Chart: Channel Up
Comment: Starting from the very beginning of November USD/JPY has been forming an upward channel, meaning the outlook for now is bullish. At the moment the pair is moving away from the lower boundary of the pattern towards the upper trend-line at 118, which in turn is reinforced by the weekly R1 and 2007 Oct high. However, the US Dollar will have to breach the resistance at 117, represented by the Nov 16 high, first.
Meanwhile, the sentiment of the SWFX market is perfectly neutral, as there is virtually no difference between the amounts of long and short open, even though the technicals are mostly giving ‘buy’ signals.
AUD/USD 1H Chart: Channel Up
Comment: Due to a formidable support at 0.8540 tested on Nov 7 the Australian is now able to pare some of the recent losses against its US peer. As a result, there is a bullish channel emerging, meaning the up-trend may remain intact in the coming days. The near-term rally is also implied by the proximity of AUD/USD to a tough support at 0.87, formed by the weekly PP and up-trend. The bearish correction in this case will be expected to start near the weekly R1 at 0.8825, where the pivot point coincides with the upper edge of the pattern. However, it is noteworthy that the technical indicators are not in favour of Aussie’s appreciation—they are mostly mixed.
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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