EUR/PLN 1H Chart: Channel Down
Comment: EUR/PLN has recently formed a well-defined channel, meaning the outlook for at least the next several days is bearish. The negative bias is reinforced by the technical indicators, though this signal is rather weak. Since the pair has just tested resistance at 4.3890 (down-trend, weekly PP, and 200-hour SMA), the current target is the lower bound of the pattern, namely 4.3490/70. However, the bears will have to push through a solid demand area around 4.3590 first. This support is created by the weekly S1 level and this week’s low. In the event the price closes above 4.3890, there will be a high probability of the recovery reaching out to 4.4190, the peak of the last two weeks.
AUD/JPY 1H Chart: Channel Down
Comment: Although AUD/JPY seems to have formed a high-quality channel, being short is risky. The reason is a solid demand area near the psychological level of 80 yen, which has already managed to prevent several attempts of the pair to go lower. A close beneath this mark will be a strong ’sell’ signal. As for the one-two day perspective, AUD/JPY is set to complete its upward correction, which has the potential to extend up to the upper trend-line of the pattern at 81.60/55. However, the bulls might stall between 81.20 and 80.90, being that this resistance zone consists of the daily R1, weekly PP, and 200-hour SMA. Meanwhile, the bullish scenario is unlikely due to the sentiment—71% of 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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