EUR/JPY forms a double top

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The euro will reach inflexion point once Spain goes for a bailout, perhaps later in the month. But until then, it will be a bit difficult for it to break out and hit recent peaks."
-Credit Agricole (based on Reuters)

Pair's Outlook

Pair has formed a neat double top pattern and continues its move towards patterns support in 100 JPY area. Although bearish impetus after peaking at 102.798 was rather strong, but pair should face significant difficulties while trying to breach support levels around 101 JPY (uptrend support connecting 24th of July and 5th of September lows). After this stop pairs bearish dip should be continuous.

Traders' Sentiment
Traders are holding on to short positions one the pair—market sentiment is bearish at 54% mark for the third straight day. Distribution of pending buy and sell orders does not suggest any changes as it is in perfect equilibrium.

© Dukascopy Bank SA
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Actual Topics

Tue, 09 Oct 2012 15:03:41 GMT

AUD/USD targets 1.03

Bearish impetus for the pair was not strong enough and did not help it to breach a cluster of support levels at 1.0160/133 area and it is rather safely hovering above major (psychological) level of 1.02. As technical indicators point at increase of downside risk, pair might try to step up to 1.03 area, but attempt to dip below 1.0160

Tue, 09 Oct 2012 07:57:01 GMT

USD/CHF faces 0.9340

USD/CHF closes in on 0.9340, confrontation with which could decide pair's direction in the medium term. If 0.9340 withstands bullish impetus, the price will be anticipated to retest 0.9251/44 with a possibility to decline even further. Alternatively, breach of 0.9340 will pave the way towards 0.9406/26—potential neck line of a double bottom pattern, such scenario will speak in favour of

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