Dukascopy Bank Team
Dukascopy Bank SA
EUR/GBP 1H Chart: Channel Down
Comment: After a failure to consolidate above the 0.80 mark the EUR/GBP currency pair started to form a bearish channel on 12th of September.
At the moment, the pair is trading near the upper trend-line of the pattern, putting a pressure on monthly S2 and weekly PP at 0.7827/30. Nonetheless, a distinct majority of the technical studies are to the downside, thus suggesting that the current bearish trend is very likely to continue. On the other hand the traders’ sentiment is bullish, with 62.83% of them expecting the pair to appreciate. Therefore, a bullish break-out should not be excluded, as a possibility.
AUD/JPY 4H Chart: Falling Wedge
Comment: After reaching the highest level in more than a year of 98.69, the pair’s bulls gave up and a falling wedge pattern started to form. Currently, AUD/JPY is challenging the pattern’s lower boundary, where the monthly PP (96.14) is located. Although, the technical indicators and SWFX market participants are largely neutral on the pair we expect that the pattern’s support level at 96.03 could be tested. If the pair rebounds from that level then an advance towards the 200-day SMA seems the most probable outcome. However, if the Aussie slides below support then the 0.95 level becomes the target.
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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