Dukascopy Bank Team
Dukascopy Bank SA
GBP/AUD 1H Chart: Rectangle
Comment: The pair is trading in the boundaries of rectangle pattern since the middle of July, recently touching the resistance line at 1.8191. Inside this longer term pattern recently formed a short term double top pattern (from 7th to 8th August), since then GBP/AUD has weakened. Nonetheless, after the current consolidation the pair should decline further towards the rectangle’s support, weekly and monthly S1 at 1.7985/76. The shorter term (1H and 4H) technical studies are neutral; however, the daily technicals are to the downside. Therefore, a decline towards 1.80 is likely; although, there is also a possibility that we could see a break-out towards the 1.79 mark.
AUD/CAD 4H Chart: Broadening Falling Wedge
Comment: At the moment the pair is fluctuating around the upper trend line of the Broadening Falling Wedge pattern that formed at 14th of May. In the perfect scenario the break-out should be to the upside in this case; however, we expect to see at least one more bearish wave as the pair rebounded from the down-trend resistance recently. The strongly bearish sentiment (71% of the traders expect the pair to decline) also strengthens the scenario, where the pair weakens. Nonetheless, the pair’s bears will have to do their best to drag AUD/CAD below the cluster of support levels (weekly S1, 200-perios SMA and monthly PP at 1.0113/1.0093) slightly lower.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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