Dukascopy Bank Team
Dukascopy Bank SA
EUR/AUD 4H Chart: Channel Up
Comment: EUR/AUD appears to have formed a bullish channel, and there are plenty of other reasons why the currency pair is likely to rebound from 1.57. Apart from the fact that the price is now testing the rising support line, strong demand nearby is also implied by the monthly S1 and September low at 1.56. Moreover, most of the technical indicators in the daily and weekly charts are pointing upwards. Accordingly, the base case scenario is a rally from 1.57 up to 1.62, where the Euro is expected to meet the upper boundary of the pattern. At the same time, a dive under 1.56 will likely lead to an extension of the decline through the monthly S2 at 1.5280 and down to the August low at 1.47.
AUD/JPY 4H Chart: Triangle
Comment: The Aussie is expected to weaken not only against the Euro, but also against the Yen. AUD/JPY has just bumped into a falling resistance trend-line, which should trigger a sell-off. This line is also the upper boundary of a symmetrical triangle, which indicates a high possibility of major trend continuation, in this case—a break-out to the downside, through support at 83.40. The next objective will then be 79.40, the October 2012 low. Alternatively, should the price close above 86.30, there will still be a good opportunity for the bears to regain control of the situation at 87.50, the September low, while beyond this level the pair will probably target the August peak at 92.70.
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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