Dukascopy Bank Team
Dukascopy Bank SA
XAG/USD 1H Chart: Ascending Triangle
Comment: Regardless of silver struggling to regain bullish momentum near the October 2015 high, our outlook on the metal is bullish. Demand is building up, and this is evidenced by the ascending triangle that formed following the rally in the first half of April. At the same time, the technical indicators are mostly pointing upwards, further increasing the upside risks. Once above 16.40, XAG/USD is to target the weekly R1 at 16.63, while in the long run it could aim for 17.80, namely the highest level since May 2015. Alternatively, should the price close under 16.17/15, another support is at 16.03/00, represented by the daily S2 and weekly PP, followed by the 200-hour SMA 15 cents lower.
EUR/AUD 1H Chart: Channel Down
Comment: EUR/AUD is currently trading in what appears to be a descending channel, and this implies further depreciation of the Euro against the Aussie. This might be true in the near term, considering the ’sell’ signals given by the hourly and four-hour technical indicators, but we are inclined to believe that the pair is not going to be able to push through the dense demand area on the way to 1.44, being that it consists of the support up-trend that has been in place since the third quarter of 2012 and is strengthened by the weekly S1, March low and the lower boundary of the channel. Accordingly, we expect a rebound from 1.4444/27 with a subsequent breach of the upper edge of the trend-line.
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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