AUD/NZD 4H Chart: Channel Up

After hitting the support at 1.0650 AUD/NZD received enough momentum in order to form an upward-sloping channel. Accordingly, the outlook is positive. However, there are considerable downside risks in the near term, since the exchange rate is fluctuating just beneath the upper trend-line and Jun 4 high. Consequently, it is more likely for the Aussie to back down to the major support at 1.0858, created by the rising trend-line, 200-period SMA and weekly S2 level, before it challenges this resistance once again, regardless of the favourable signals given by the technical indicators. As for the sentiment in the SWFX marketplace, 72% of open positions are long.