Dukascopy Bank Team
Dukascopy Bank SA
EUR/PLN 4H Chart: Channel Down
Comment: The Euro has been underperforming the Polish Zloty since Dec 29, when the currency pair encountered a strong resistance level at 4.40. Considering that EUR/PLN has formed a channel down pattern during this time, the overall outlook toward the rate is bearish. However, in the short run we are likely to see an upward correction. The pair is currently facing a dense demand area represented by the lower trend-line of the channel near 4.1617, which is reinforced by the weekly S1 and the nearby 2014 Dec low. The Euro is expected to breach the accelerated falling resistance at 4.18 and start heading in the direction of the upper trend-line of the pattern, where the rally should come to an end.
AUD/JPY 4H Chart: Channel Down
Comment: Given the fact that AUD/JPY is trading within the boundaries of the bearish channel, the Aussie is likely to keep depreciating against the Yen. At the moment the currency pair is trading in the vicinity of the resistance trend-line, which should guide the price through the nearby supports until it reaches the lower edge of the channel. While the near-term outlook is more or less clear, there are significant upside risks in the longer-term perspective, represented by the 2014 low at 88.24. The pair must close beneath this obstacle in order to confirm its long-run bearish intentions. Meanwhile, the SWFX sentiment with respect to AUD/JPY is strongly bullish: 73% 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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