Dukascopy Bank Team
Dukascopy Bank SA
AUD/USD 1H Chart: Descending Triangle
Comment: The Aussie continue to underperform relative to the US Dollar; however, after finding a support level around 0.82 it managed to form a descending triangle pattern.
The pattern has already left the boundaries of the pattern; nonetheless, it still remains supported at the same level. Therefore, we think that the break-out is still to come and according to SWFX traders’ opinion it is going to be bullish, as 70% of them have opened long positions. At the same time, the AUD/USD cross is still bearish and it will have to find a reliable support to rebound, which will not be easy, especially with the bearish 4H and daily technical indicators.
EUR/USD 4H Chart: Triangle
Comment: The pair is consolidating around the 1.23/1.24 levels and that has pushed the pair into a triangle pattern.
Currently, the apex of the triangle pattern has been reached and that could mean the end to the period of consolidation. To our mind the next move is to the downside, despite the fact that the short-term (4H) technical studies are pointing to the north. The monthly PP at 1.2471 is likely to hold back the pair’s bulls and eventually that will lead to a sell-off towards the 1.23 level or even the monthly S2 at 1.1230. Moreover, the majority of the SWFX traders’ are also bearish on the pair, since 58% of them have opened short positions.
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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