In Swissquote’s Monday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for AUD/USD and EUR/GBP. To view and download the entire report, click here (PDF).
AUD/USD: Declining sharply
• AUD/USD continues its steep decline. The psychological support at 0.9000 has been breached. Another support lies at 0.8891. Hourly resistances can be found at 0.9080 (intraday high) and 0.9218 (10/09/2014 high).
• In the medium-term, the break to the downside out of the 5 month horizontal range between 0.9206 and 0.9505 (bearish head and shoulders formation) calls for a further decline towards the support at 0.8891 (03/03/2014 low).
EUR/GBP: Moving sideways
• EUR/GBP continues to consolidate within the horizontal range defined by the support at 0.7874 and the key resistance at 0.8034. An hourly support lies at 0.7941 (12/09/2014 low). The long-term declining channel continues to favour a bearish bias.
• In the longer term, the break of the key support area between 0.8082 (01/01/2013 low) and 0.8065 (05/06/2014 low) opens the way for a full retracement of the rise that started at 0.7755 (23/07/2012 low). Another strong support stands at 0.7694 (20/10/2008 low). A break of the resistance at 0.8034 (25/06/2014 high) is needed to suggest some exhaustion in the medium-term selling pressures.
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