Dukascopy Bank Team
Dukascopy Bank SA
AUD/JPY 4H Chart: Channel Up
Comment: Having encountered strong buying interest near 90.30, AUD/JPY has been trading in an up-trend since the beginning of April. However, right now the currency pair is facing a formidable resistance level at 96.00, which is not letting the Australian Dollar to appreciate further. If this barrier is finally overcome, the next target will be 97.58, namely the upper edge of the recently formed bullish channel. On the other hand, in case the price closes beneath support at 94.00, the sell-off will be expected to extend down to the 200-period SMA. In the meantime, an overwhelming majority of the SWFX market participants are bullish with respect to AUD/JPY, being that 71% of positions are long.
EUR/CHF 4H Chart: Channel Down
Comment: Being unable to climb above 1.05, EUR/CHF is now in the process of forming a bearish channel. Over the next few days the exchange rate should aim for 1.0260, while being capped by the upper boundary of the pattern, which is currently at 1.0370.
In the longer-term perspective, when and if the currency pair approaches 1.0240, the upside risks will dominate the probability of a further decline, and the pattern will likely be broken to the upside. As for the attitude of the SWFX market participants, a vast majority reckons that the Euro is going to outperform the Swiss Franc, since right now 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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