Dukascopy Bank Team
Dukascopy Bank SA
EUR/USD 4H Chart: Channel Down
Comment: EUR/USD is poised to decline in the coming days. Although the technical indicators are mixed, there are two falling resistance trend-lines that are highly unlikely to let the bulls to take control of the pair. The immediate supply is supposed to be at 1.1333, where the upper edge of the patter merges with the weekly PP. If the Euro escapes the boundaries of the channel, there is an even stronger resistance zone around 1.1468, where the monthly S3 coincides with the two-month down-trend. Accordingly, the base case scenario is a sell-off down to 1.08, where the pair will meet the 12-year low, with a possibility of short-term rallies at 1.11 (Jan 25 low) and at 1.0987 (weekly S1).
AUD/JPY 4H Chart: Falling Wedge
Comment: The Australian Dollar has been depreciating since last year’s November, but there are signs the currency will no longer underperform the Japanese Yen. AUD/JPY is currently forming a falling wedge, a pattern that portends a reversal of a bearish trend. The case is hardened by the Aussie facing a dense demand area around 92.00, created by the Oct low, down-trend, weekly S1, and monthly S2. A deeper decline, down to 91.00 or 90.00, will not invalidate this scenario, these levels can also prove to be the turning points. Concerning the SWFX market sentiment, it is distinctly bullish, 72% of open positions are long.
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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