Dukascopy Bank Team
Dukascopy Bank SA
AUD/JPY 4H Chart: Falling Wedge
Comment: AUD/JPY followed a half-year senior uptrend on the daily chart, but managed to break underneath and start a retracement. A falling wedge, however, signals that the violation might be a false one due to bullish pressures building up inside the pattern. The next upside target is at 86.73, the crossing between the upper boundary of the rising wedge pattern and the senior trend-line, and we will then look for the pair to distance itself from it and 88.12 could be the next big target. Due to the multiple significant levels that lie on the way, the motion might flatten out and extend in terms of time.
AUD/USD 4H Chart: Channel Up
Comment: AUD/USD has been changing slopes a lot, but has managed to climb out of the under 0.72 pit it had entered in December-January. The pair has now entered a channel up pattern on the four-hour chart and is approaching the 0.7749 area which has cut upside potential a few times before, meaning that some trouble might be coming up. The rate has hit 0.7724 twice already and has not been able to push through, which, together with a sticky bottom trend-line suggests that the pattern might break to the downside. The first target below lies at 0.7650 and then 0.7632, while upside is immediately limited by 0.7688.
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