AUD/NZD 4H Chart: Channel Down

EUR/JPY 1H Chart: Triangle

Comment: Just recently the pair reached the highest level this year at 149.14; however, the Euro did not manage to hold its positions this high. From this point onwards a correction phase started, which also created a triangle pattern.

EUR/JPY is trading at the very apex of the triangle; therefore, a break-out might be anticipated. The shorter-term technical indicators are to the downside; although, there is a considerably strong supports ahead that could protect the pair from falling lower. The SWFX traders’ expect a bearish break-out, as 66% of them have shorted the pair. Now, if the pair’s bears drag the pair below the weekly PP and 200-period SMA then the weekly S2 is the target.

AUD/NZD 4H Chart: Channel Down

Comment: The Aussie has been targeting the 1.13 level for most of the second part of this year; however, unsuccessfully. A failure at that level has sent the pair lower and it has formed a bearish channel.

The current channel down pattern could be a part of a longer–term triple bottom pattern. Nevertheless, at the moment the pair is approaching a cluster of support levels (daily, weekly and monthly S2) located at 1.0886/68. With the negative technical indicators this level most likely will be breached, while in longer term a rebound and a bullish break-out could be expected. Moreover, the SWFX market participants are strongly bullish on the pair.