Dukascopy Bank Team
Dukascopy Bank SA
EUR/GBP 1H Chart: Channel Up
Comment: On the last day of September EUR/GBP fell to as low as 0.7767, a level untouched since July 2012. However, since then the pair has managed to recover by forming a bullish channel.
Yesterday, the pair approached the upper trend-line and the weekly R2 at 0.7933. Yet, the Euro was not ready to break the pattern to the upside, thus a decline followed. We tend to think that a bearish break-out is more likely, as in general this is a reversal pattern, thus in a base scenario a break-out to the downside should occur. Also, a distinct majority (68.61%) of the SWFX market participants have opened short positions on the pair.
AUD/SGD 4H Chart: Broadening Falling Wedge
Comment: After reaching the strongest level since July on 5th of September, the AUD/SGD cross started sliding in value. Moreover, the pair’s decline led to a formation of broadening falling wedge pattern.
Currently, the pair is appreciating towards the upper boundary of the pattern, after bouncing off the psychological level at 1.10. Additionally, this level has not been touched since May 2009; therefore, making it even more substantial. Even though there is more bearish than bullish sentiment towards the pair, it will definitely need some strong selling action to decline below the 1.10 level. The SWFX traders’ expect a further retreat, as 55.77% of them are selling the pair.
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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