Patterns: AUD/NZD, AUD/SGD

Dukascopy Bank Team Dukascopy Bank SA

AUD/NZD 1H Chart: Short-term advance expected

The AUD/NZD exchange rate has been trading upwards since the beginning of August when it reversed north from the psychological level at 1.0350. As apparent on the chart, the rate has already tested the 1.0700 level.

Note that the currency pair is supported by the 55-, 100– and 200-hour moving averages, currently located in the 1.0621/1.06664 range. Thus, it is likely that some upside potential could prevail in the market. In this case, the pair could reach the upper boundary of the long-term descending channel in the 1.0750/1.090 range.

However, note that the rate has to surpass the resistance level formed by the weekly R1 at 1.0742. If the given level holds, a reversal south could occur.

AUD/SGD 1H Chart: Bears likely to prevail

The AUD/SGD exchange rate has been trading sideways in the 0.9340/0.9420 area since the beginning of August. Currently, the rate is trading at the monthly R3 at 0.9348.

Given that the exchange rate is pressured by the 55-, 100– and 200-hour moving averages, currently located in the 0.9344/0.9368 range, it is likely that bears could prevail in the market. A possible downside target is the lower boundary of the long-term descending channel located in the 0.9200/0.9400 range.

It is unlikely that bulls could prevail in the market, and the Australian Dollar could exceed the 0.9500/0.9550 range against the Singapore Dollar due to the resistance of the upper channel line.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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