Patterns: EUR/AUD, EUR/CAD, EUR/CHF, GBP/CHF

Dukascopy Bank Team Dukascopy Bank SA

EUR/AUD 4H Chart: Traded sideways

The common European currency has been trading sideways against the Australian Dollar since May 12. The currency pair traded between the range of 1.6866/1.6636 during the past two weeks.

All things being equal, a downside breakout could occur within this week's trading sessions.

If the breakout occurs, a decline towards the 1.6400 would be expected in the short-term.

However, if the 1.6635 support line holds, the EUR/AUD currency exchange rate would make an upward move during the following trading sessions.

EUR/CAD 4H: Breached channel pattern

The Eurozone single currency has surged by 1.63% against the Canadian Dollar since May 11. The currency pair breached the upper boundary of a descending channel pattern at 1.5249 during last week's trading sessions.

As for the near future, the EUR/CAD exchange rate would continue to edge higher. Bullish traders might target the 1.5450 area within this week's trading sessions.

On the other hand, the currency exchange rate could make a U-turn from the weekly PP at 1.5249 and continue to trade in the descending channel pattern during the following trading sessions.

EUR/CHF 1H Chart: Upside potential could prevail

The EUR/CHF currency pair failed to decline below the monthly S1 at 1.0518. Last Monday, the pair skyrocketed to the monthly R1 at 1.0632.

It is likely that the exchange rate could gain support from the 200-hour SMA near 1.0570 and trade upwards in the nearest future. In this case the rate could face the resistance level—the monthly R2 at 1.0685.

Meanwhile, note that the currency pair is pressured by the 55– and 100-hour SMAs near 1.0600. Thus, some downside potential could prevail in the market. If the monthly S1 holds, it is likely that the pair could consolidate in the medium term.

GBP/CHF 1H Chart: Falling wedge pattern in sight

The British Pound has been trading downwards against the Swiss Krone within a falling wedge pattern since the end of April.

From a theoretical point of view, it is likely that the GBP/CHF exchange rate could continue to trade within the given pattern until the middle of June. Then, a breakout north could follow.

Meanwhile, note the currency pair is pressured by the 55-, 100– and 200-hour moving averages. Thus, a breakout south could occur within the following trading sessions, and the pair could re-test the psychological level at 1.1200.

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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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