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 USD/JPY and AUD/USD. To view and download the entire report, click here (PDF).
USD/JPY: Challenging the support at 108.01
• USD/JPY has weakened near the major resistance at 110.66 (15/08/2008 high). The key
support at 108.01 (see also the low of the declining channel) is challenged. Another key support stands at 106.81. An hourly resistance lies at 109.23 (07/10/2014 high).
• A long-term bullish bias is favoured as long as the key support 100.76 (04/02/2014 low) holds. The recent new highs confirm a strong underlying bullish trend. Despite the recent pause near the major resistance at 110.66 (15/08/2008 high, see also the 50% retracement from the 1998’s top), a move higher is eventually favoured. Another resistance can be found at 114.66 (27/12/2007 high).
AUD/USD:The resistance at 0.8826 has held thus far
• AUD/USD has experienced a pickup in buying interest near the strong support at 0.8660 (24/01/2014 low). However, prices have thus far been unable to break the key resistance at 0.8826. A break of this level would validate a short-term base formation. Another key resistance lies at 0.8950. An hourly support can be found at 0.8727.
• In the long-term, the underlying trend is negative. The impulsive decline from the lower high at 0.9505 (01/07/2014 high) does not suggest that the end of this downtrend is near. Monitor the test of the strong support at 0.8660 (24/01/2014 low). A key resistance stands at 0.9112 (16/09/2014 high). Another strong support lies at 0.8067 (25/05/2010 low).
