EUR/HKD 1H Chart: Descending Triangle
|AUD/CAD 1H Chart: Channel Down
Comment: The Australian Dollar is trading against the Canadian Dollar in the short term descending channel slightly below the monthly S1 at 1.0016 and is trying to reach the bottom edge of the pattern. A rebound most likely is going to occur, as the narrowing fluctuations of the rate point out on formation of the falling wedge. In addition, the pair has no resistance levels on its way in the upward direction, except for the abovementioned monthly S1. However, even if the exchange rate breaks the lower trend line of the channel, most probably it will still be constrained by the weekly S1 at 0.9978 and 61.8% Fibonacci retracement level at 0.9958, which is measured by connecting the 2016 high and low levels.
EUR/HKD 1H Chart: Descending Triangle
Comment: The common European currency is trading against the Hong Kong Dollar in the descending triangle with equal lows located at the 8.7047 level. The formation of this figure serves as a confirmation of the end of an uptrend, which lasted for the last two weeks. There is a possibility that a breakout in the downward direction will occur during this trading day, as the rate is facing resistance put by the monthly R2 at the 8.7138 level. However, if the pair manages to bypass this barrier, it will face no further resistance right until the upper trend line of the pattern, which is supported by the weekly PP at 8.7282.
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