Dukascopy Bank Team
Dukascopy Bank SA
AUD/USD 4H Chart: Double Bottom
Comment: AUD/USD appears to have bottomed out at 0.76, and there is an increased possibility of a strong rally over the next several weeks. Once a cluster of resistances just above 0.78 is broken, the Aussie will be in a good position to surge towards May high, despite there being the 200-period SMA. A more conservative target would be the monthly R1. However, if the neck-line stays intact, the price is likely to retreat back to the Jun 1 low, and potentially it could form yet another bottom. Otherwise, we will look at 0.7534 (weekly S1 and Apr low) as the next objective. In the meantime, a substantial majority of the SWFX traders (73% of them) is long the Australian Dollar.
USD/NOK 4H Chart: Double Top
Comment: Judging by the latest developments in USD/NOK, the recent rebound of the US Dollar has already come to an end. The reason is a reversal pattern, though it is still yet to be confirmed, and we might need a catalyst in the form of the US-negative fundamental news to break through the tough neck-line at 0.71, and there is also formidable support at 7.65, where the monthly pivot point coincides with the long-term moving average. If the bears win, the first target will be the monthly S1 at 7.4173, followed by the May low at 7.2920. As for the long/short ratio, the SWFX market participants do not seem to support a bearish scenario. At the moment 65% of traders are holding long positions.
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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