Dukascopy Bank Team
Dukascopy Bank SA
EUR/AUD 1H Chart: Descending Triangle
Comment: EUR/AUD reached a multiple month high at 1.4707 on 16th of October. However, the pair’s bulls failed to push it higher, thus a decline followed. After a retreat below the 100 and 200-period SMAs the pair found a support and formed a descending triangle pattern.
Currently, the Europe’s shared currency is heading towards the pattern’s support at 1.4368 and also nearing the triangle’s apex. For the time being there is more bearish signals than bullish. The hourly technical indicators are pointing to the south; however, the 4H and daily ones are neutral. Moreover, the SWFX traders’ sentiment is rather strongly bearish, with 66.46% of them having opened short positions.
USD/CAD 4H Chart: Broadening Rising Wedge
Comment: There is a great amount of bullish potential for USD/CAD if the support levels (100-bar SMA; daily S1) around 1.1225 holds, since the broadening rising wedge pattern has formed. The more reliable daily and weekly technical studies are bullish and that could help to keep the pair afloat. Moreover, an overwhelming majority (75%) of the market participants are long the Greenback. Currently, the target level is the weekly R1 and major level at 1.13, these levels have halted bullish break-outs for the last two weeks. However, we still expect the pair to breach these levels in this trading week due to the strong bullish sentiment and ‘buy’ signals that the technical indicators are giving.
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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