Patterns: ZAR/JRY, AUD/CHF

Dukascopy Bank Team Dukascopy Bank SA

ZAR/JRY 1H Chart: Channel Down

The South African Rand is losing value against the Japanese Yen in junior descending channel that started to form in the result of a rebound of the currency exchange rate from the upper trend-line of a dominant descending channel. This fact suggests that a fully-fledged rebound should not happen in the nearest future. Another factor that points out on impossibility of the surge is a combination of the 55-, 100- and 200-hour SMAs that are moving precisely along the resistance line of the junior channel. In addition to that, this pattern consists only of three confirmation points, which means that the rate is going to try to slip to the bottom and make a second reaction low. The first support that is likely to restrain the further fall is located only in the area between the 8.20 and 8.18 levels.

AUD/CHF 1H Chart: Falling Wedge

The Australian Dollar is trading against the Swiss Franc in pattern that recently started to transform from a two week long descending channel into a falling wedge. The reason behind such transformation is related to sudden sharp depreciation of the Aussie, which put the currency rate below the 55-, 100- and 200-hour SMAs. Accordingly, in the subsequent days their combined pressure blocked all attempts to restore lost positions. In theory, in this type of pattern the ultimate breakout should happen to the north. However, a massive presence of various technical indicators calls into question such outcome. In addition to that, if the assumption about simultaneous existence of a senior ascending channel is true, then the rate even more has to tend to move to the south.

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Dukascopy Bank Team

Dukascopy Bank SA

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