In Swissquote’s Wednesday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for GBP/USD and AUD/USD. To view and download the entire report, click here (PDF).
GBP/USD: Trying to bounce
• GBP/USD is trying to bounce from its oversold decline. Hourly resistances can be found at 1.6233 (08/09/2014 high) and 1.6340 (05/09/2014 high). An hourly support now lies at 1.6060, while a more significant support stands at 1.6000 (psychological threshold and 50% retracement).
• In the longer term, prices have collapsed after having reached 4-year highs. The breach of the key support at 1.6220 confirms persistent selling pressures and opens the way for further decline towards the strong support at 1.5855 (12/11/2013 low). A key resistance now stands at 1.6644.
AUD/USD: Bearish breakout of the support at 0.9206
• AUD/USD has broken the key support area defined by 0.9206 and the 200 day moving average (see also the 38.2% retracement). The short-term technical structure is negative as long as prices remain below the hourly resistance at 0.9251 (intraday low). A first hourly resistance can be found at 0.9218 (intraday high).
• In the longer term, the break to the downside out of the 5 month horizontal range between 0.9206 (see also the 200 day moving average) and 0.9461 (10/04/2014 high)/0.9505 calls for a further decline towards the support at 0.8891 (03/03/2014 low).
