EUR/AUD 4H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
The general outlook on EUR/AUD is bearish, as the currency pair has recently formed a descending channel. The target is the lowest since Jun 28 level, namely 1.4320. In the short run, however, the Euro retains potential to appreciate while undergoing an upward correction. During the next several days the price could rise 100-150 pips, but the gains are to be limited by the falling resistance line at 1.4850. If this is not the case and the rate keeps advancing, the next probable ceiling is at 1.50, represented by the weekly R1 and monthly S1, followed by the weekly R2, Nov 9 high and 200-period SMA near 1.53. Meanwhile, the market is overbought—69% of positions are long.
© Dukascopy Bank SA
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