Comment: AUD/JPY soared to yearly highs at 87.38 in an accelerated motion, proving that the some time to execute a correction is needed on the daily chart and has therefore sketched an ascending triangle formation. The triangle brings little doubt that the pair will continue the surge when the upper trend-line is broken due to several reasons, including the false breakout of the boundary in February as well as facilitation from underlying SMAs and an Ichimoku cloud. The first area to test after the upper trend-line breaks will come at 87.94/88.00 and could serve as short-term supply for a correction.
AUD/NZD 30M Chart: Channel Down
Comment: AUD/NZD posted a 6.7% gain over the last month, taking on a steep slope, but now proving it to be unsustainable in a channel down pattern on the 30 minute chart. Recent tests of the upper trend-line suggest that upside potential is rising and that the mature pattern might break around 1.0962, as bulls take over in today’s trading session. Immediate resistance lies at 1.0959 and could fail to let the rate through immediately, but we expect it not to cut the motion altogether and break along with the upper trend-line. In case the pattern maintains its position inside of the channel, the bottom boundary around 1.0930 might become the ultimate target.
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