Dukascopy Bank Team
Dukascopy Bank SA
AUD/USD 4H Chart: Channel Up
Comment: AUD/USD is well-positioned for a rally. Late last year the currency pair broke through a major falling resistance trend-line and then confirmed it in January, which implies a long-term bullish outlook. As for the shorter-term perspective, the rate is currently fluctuating right at the lower boundary of the emerging ascending channel, meaning there should soon be a rebound from 0.76. The immediate resistance is at 0.7640, but it may take some time before the bulls are able to push the price above it, considering that the area is created by the 200-period SMA and weekly pivot point. The next target should be a cluster of resistances between 0.7870 and 0.7835.
EUR/CHF 1H Chart: Channel Down
Comment: EUR/CHF topped out near 1.1020 after April recovery, and now the exchange rate is forming a bearish channel. At the moment, the Euro is approaching the upper boundary of the emerging pattern, and we expect the price to bounce off of 1.1005 in the nearest future. The closest significant support is at 1.0985/79, formed by the weekly pivot point and 200-hour SMA, but the sell-off is likely to extend some 30 pips lower, down to the lower boundary of the channel at 1.0960. In the meantime, the SWFX market participants appear to be undecided with respect to the currency pair, being that 45% of open positions are long and 55% are short.
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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