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 EUR/USD and AUD/USD. To view and download the entire report, click here (PDF).
EUR/USD: Challenging the 1.2500 threshold
• EUR/USD continues to move lower, confirming persistent selling pressures. However, in the short-term, the psychological threshold at 1.2500 has held thus far. Hourly resistances for a shortterm bounce can be found at 1.2584 (01/10/2014 low) and 1.2699 (02/10/2014 high).
• In the longer term, EUR/USD is in a succession of lower highs and lower lows since May 2014. The break of the strong support area between 1.2755 (09/07/2013 low) and 1.2662 (13/11/2012 low) opens the way for a decline towards the strong support at 1.2043 (24/07/2012 low). Intermediate supports are given by 1.2500 (psychological support) and 1.2466 (28/08/2012 low).
AUD/USD: Challenging the strong support at 0.8660
• AUD/USD declined sharply last Friday. However, short-term buying interest is visible near the strong support at 0.8660. An hourly resistance lies at 0.8765 (previous support), while a break of the resistance at 0.8826 is needed to invalidate the current short-term bearish technical structure.
• 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).
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