© Dukascopy Bank SA
Following a failure to exceed the resistance at 0.9280 the Australian Dollar entered a channel down that is already 100 bars long. Even though the corridor is fairly narrow—a little more than 100 pips wide, none of the trend-lines were disrupted by the price action during this period. Consequently, we may expect the currency pair to remain within these boundaries (at the moment the resistance is at 0.8916, while the support is at 0.88) for a few more days, taking as well into account that the technical studies are suggesting continuation of a bearish tendency by giving ‘sell' signals for the hourly and 4H time-frames.
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