EUR/GBP 4H Chart: Double Bottom

AUD/CAD 4H Chart: Channel Up

Comment: Because of a strong demand area near 0.94 the currency pair was able to commence a recovery late December that still remains topical. Accordingly, the outlook is positive for AUD/CAD, but the bulls should be particularly wary of the resistances at 1.01 and 1.025, represented by the 2014 Aug low and 2014 Sep high, respectively. These levels are potential reversal points. In the near term the Aussie is likely to negate some of the recent gains. The currency has just reached the upper trend-line of the channel, meaning there should be a bearish correction down to the 0.9850/00 region before we seen another up-swing.

EUR/GBP 4H Chart: Double Bottom

Comment: There is a double bottom emerging near the lower boundary of the bearish channel, as there are two distinct valleys formed with the help of the support at 0.76 (down-trend and monthly S2). Consequently, if the pair closes above the neck-line at 0.77 (Jan 20 high), there is a good chance the rally will extend higher, but at the same time the up-move should limited by the major down-trend at 0.78, which is reinforced by the weekly R1. One should remember, however, that today’s fundamentals, specifically the ECB Press Conference, pose a significant threat to this scenario, and many of the levels mentioned may well be violated amid elevated volatility.