Dukascopy Bank Team
Dukascopy Bank SA
AUD/USD 4H Chart: Channel Down
Comment: July was a bearish month for AUD/USD, during which the currency pair formed a downward-sloping channel. This tendency is expected to continue, and there should be a sell-off from the upper boundary of the pattern down to 0.70. There are two significant supports the Aussie has to break first however, namely the weekly PP and monthly S3 at 0.7310 and the Jul 28 low at 0.7257. At the same time, in case resistance at 0.7360 fails to contain the buying pressure, the target will be set to the 0.75-0.76 region, where the long-term moving average merges with the monthly S1 level. The sentiment is strongly bullish: 71% of positions are long and 29% are short.
GBP/CAD 4H Chart: Channel Up
Comment: While in the long run we have almost no doubts that the Sterling will keep outperforming the Loonie, the near-term outlook is not as positive. GBP/CAD has recently encountered an upper trend-line of the channel, meaning the price is likely to trade either flat or to the downside. In case of a dip the losses are to be limited by a dense demand area at 1.99. But if this support is violated, the Pound will have a good opportunity to stabilise only at 1.95, and may well fall down to 1.9330 before the bulls regain control of the situation. As for the distribution between the longs and shorts, the former dominate the market, taking up 72% of it.
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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