Dukascopy Bank Team
Dukascopy Bank SA
EUR/AUD 1H Chart: Channel Up
Comment: EUR/AUD managed to stabilise at and eventually start a recovery from 1.38 after a precipitous decline between the 7th and the 10th of April. The upward momentum is now challenged by the supply area near 1.40, which is reinforced by the weekly pivot point. If this resistance is overcome, 1.41 will become the next target. There the upper boundary of the channel merges with the daily R2 and the 200-hour SMA. At the same time, violation of 1.3957 will invalidate the near-term bullish outlook. In this case the Euro will be expected to aim for 1.3884 before the Apr 10 low at 1.3786. However, the SWFX traders’ sentiment is currently bearish: 62% of open positions are short.
EUR/CAD 1H Chart: Channel Down
Comment: Because of a solid resistance level at 1.3750 the currency pair had no other choice but to decline. Even though the technical indicators are largely mixed, with only the hourly ones demonstrating some bearish bias, the Euro still appears to be a good sell against the Canadian Dollar. EUR/CAD is expected to leave the falling trend-line at 1.33 intact and instead pursue the lower edge of the channel at 1.3132, despite the significant support levels at 1.3250 and at 1.3183. As for the attitude of the SWFX market participants, a majority (55%) of them are at the moment long the single currency, though the advantage over the bears is not yet critical.
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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