Patterns: AUD/CAD, EUR/CHF
|AUD/CAD 4H Chart: Breakout occurs
Upside risks have dominated the Australian Dollar versus the Canadian Dollar since the beginning of September. After hitting the upper boundary of a long-term descending channel pattern at 0.9142 on September 13, the exchange rate made a U-turn south. As a result, a breakout occurred through the bottom border of a junior ascending channel during the morning hours of Thursday's trading session.
Given that a breakout had occurred, the AUD/CAD currency pair will most likely continue its southern movement within the following trading sessions. The potential for bearish traders would be near the weekly S2 at 0.8957.
However, a support level formed by the 200-hour simple moving average at 0.9006 could provide support for the currency exchange rate in the short term.
EUR/CHF 4H Chart: Tests weekly resistance level
The common European currency has appreciated about 1.70% in value against the Swiss Franc since September 5 after the currency pair reversed from a support cluster formed by the weekly S2 and the monthly S1 at 1.0807.
The exchange rate is currently testing a resistance level set by the weekly R1 at 1.1013.
If the resistance line holds, a decline towards the 50– period simple moving average at 1.0952 could occur in the short term.
On the other hand, if the currency exchange rate passes the weekly R1, as mentioned above, bulls could drive the price towards the weekly R2 at 1.1098 during the following trading sessions.
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