GBP/CAD 1H Chart: Channel Up

XAU/USD 1H Chart: Rising Wedge

Comment: Gold was trading above its 200-hour SMA after surpassing this level on August 8. Last Thursday, XAU/USD started to form a rising wedge pattern and now is moving closer to the convergence of the pattern’s trend-lines, implying that a bearish reversal is possible.

At the moment, the precious metal is struggling at the four-hour pivot point at 1416.94 that, if broken, may trigger a downswing towards the cluster of four-hour support levels at 11414.12/08.05 and, if the decline continues, XAU/USD may see itself falling to 1401.98 (daily S1) that may alleviate downside pressure.

GBP/CAD 1H Chart: Channel Up

Comment: The 200-hour SMA represented a strong support level for GBP/CAD throughout three weeks ended August 21 when the pair failed to sustain its upward trend and dropped below its 200-hour SMA, the level close to which GBP/CAD was vacillating during the last nine hours. Currently, the currency couple is swinging slightly below 1.6301 (200-hour SMA) but a deeper sell-off is unlikely as market players are strongly bullish on the pair (72.29% of all traders hold long positions). To confirm the traders’ sentiment, the pair has to jump above its 200-hour SMA; this rise would suggest an on-going strength of GBP/CAD until it reaches the resistance zone at 1.6330/80 (daily PP and daily R1).

USD/HKD 1H Chart: Rising Wedge

Comment: Having received an impulse for a rally after crossing its 200-hour SMA, USD/HKD was following an upward trend until it topped a three-week high. The pair retreated from this mark to the pattern’s support, and now the level of 7.7563 (pattern’s support) prevents USD/HKD from a further decline towards the support zone sitting at 7.7558/7 (four-hour S2 and daily S1). At the same time, the pair is not expected to tumble, as traders buy the pair in 91.67% of cases. To meet the traders’ expectations, the pair should overcome its four-hour pivot at 7.7565 and cross the resistance at 7.7568 (daily R2) en its route towards the upper-limit of the pattern at 7.7572.

EUR/AUD 4H Chart: Channel Up

Comment: The pair managed to bounce off its 200-bar SMA twice between June 20 and August 28. Over this period, the pair neither dropped below the lower line of the pattern of 1.4711 nor surpassed the upper-boundary of 1.5414.

At the moment, EUR/AUD is faltering near the mark of 1.4940 (daily PP), and a decline beneath this level may create a notable selling pressure on the pair. At the same time, a jump above 1.5032 (daily R1) may provoke a sharp appreciation of EUR/AUD towards the next resistance zone 1.5091 (daily R2).