Dukascopy Bank Team
Dukascopy Bank SA
AUD/CHF 1H Chart: Double Bottom
Comment: Our bias towards AUD/CHF for today is strongly bullish, even though the technical indicators at the moment are mixed. The currency pair has just broken through the neck-line of the double bottom, and by the end of Thursday the price of the Australian Dollar is likely to increase by 70 pips, which is the distance between the neck-line and the Oct 13 low. The target coincides with the daily R3 level, which is currently standing at 0.7039. In case the Aussie preserves bullish momentum after hitting the target, the next objective could be 0.7097, namely the October 12 high. Meanwhile, the sentiment among the SWFX market participants is distinctly positive: 74% of all open positions are long.
CHF/JPY 4H Chart: Channel Up
Comment: In the lower time-frames (H1) going long in CHF/JPY might seem to be a good idea, but the H4 chart suggests a decline is more likely. The pair has just encountered an upper boundary of an emerging channel, which is also reinforced by the monthly R1 level. Accordingly, we expect a sell-off from here, especially considering the weekly technical studies. The immediate support is at 124.54, but a serious test of the bearish momentum will be at 123.70, where the monthly PP merges with the weekly S1 and 200-period SMA. Correction should start near the lower edge of the pattern, namely circa 122.70. At the same time, SWFX sentiment is negative: 74% of positions are shorts.
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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