Dukascopy Bank Team
Dukascopy Bank SA
EUR/AUD 4H Chart: Channel Up
Comment: EUR/AUD tested a solid support level 1.37 in the second half of April, and since then the exchange rate has been in a strong upward trend. Right now the Euro is undergoing a bearish correction, but the decline should come to an end around 1.4750. From there EUR/AUD is likely to launch another attack on the 2014 Dec high, but the ability of the pair to rise far above 1.5330 is in question, despite the daily and weekly technical indicators pointing upwards. There are plenty of other resistances capable of turning the trend around, such as the 2014 Mar high at 1.5540 and the overall 2014 high at 1.5833. The SWFX sentiment is currently bearish: 60% of open positions are short.
CHF/JPY 4H Chart: Channel Down
Comment: Given the current situation in the CHF/JPY pair, the Swiss Franc is likely to depreciate even more against the Japanese Yen in the nearest future. While the ceiling is at 128.88 (down-trend and monthly S1), the target is the lower boundary of the channel at 127.18. If this support is broken, the next objective will be 125.50, a level that was important in March and April. In case of a break-out to the upside, the first significant resistance will be at 129.86 (Jul 23 high), followed by the weekly R2 together with the 200-period SMA at 130.50. Meanwhile, despite the arguments against a rally, 73% of the SWFX traders are long the Franc, perhaps reckoning that the price is about to hit a bottom.
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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