Dukascopy Bank Team
Dukascopy Bank SA
EUR/AUD 1H Chart: Channel Down
Comment: As the resistance at 1.46 proved to be impenetrable this November, the Euro came under strong selling pressure that resulted in formation of the bearish channel. Accordingly, the medium-term risks are to the downside, especially considering that the currency pair is currently trading near the upper edge of the pattern.
On the other hand, EUR/AUD will have to emerge victorious over the two-month low at 1.4230 in order to keep going lower. If this support is violated, the Sep low at 1.38 may become the next objective. Otherwise the price will be expected to return to the November high at 1.46.
EUR/CAD 1H Chart: Channel Up
Comment: Since the bears were unable to force the Euro to dip under 1.4040, the bulls regained control of the market and started to push the price higher while keeping it between two parallel trend-lines.
Right now EUR/CAD is in the middle of a bullish wave, which is struggling to cross the 200-hour SMA. Unless the weekly pivot point at 1.4130 gives in, the resistance at 1.4160 should soon be broken, which in turn will open a path towards the Nov 13 high at 1.4215, also the current location of the weekly R1 and up-trend. In the meantime, the sentiment of the traders is neutral—47% of open positions are long and 53% are short.
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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