EUR/USD 1H Chart: Emerging Pattern: Channel Up

by Admin

EUR/USD has formed a Channel Up pattern on the 1H chart. The pattern has 53% quality and 42% magnitude in the 86-bar period.

The pattern began on 75th of March when the pair dipped to 1.2751; at the moment it is trading close to pattern’s support at 1.2797. Trading volume seems to be decreasing in the length of the pattern. Technical indicators on aggregate point at appreciation of the pair on 4H horizon suggesting it should continue should bounce from the pattern’s support. Long traders could focus on the .20-bar SMA at 1.2818, daily pivot (PP)/Bollinger band at 1.2835/42, 200-bar SMA/daily pivot (R1) at 1.2854/62 and pattern’s resistance/20-day SMA/daily pivot (R2) at 1.2893/904.

Technical indicators on aggregate point at depreciation of the pair on 1H and 1D horizons suggesting it might dip below the pattern’s support. Short traders could focus on the Bollinger band/daily pivot (S1)/pattern’s support at 1.2794/90and daily pivots at 1.2766 (S2) and 1.2724 (S3).

EURUSD

EUR/SGD 1H Chart

Emerging Pattern: Channel Down

During the last 171 hours EUR/SGD has been trading within a Channel Down pattern, after the pair had decoupled from the 200-bar SMA. According to the technical indicators, the outlook on the pair is bearish. Market participants also expect the price to decline, since 74% of them are short on it.

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AUD/USD 1H Chart

Emerging Pattern: Channel Up

Despite the fact that the Australian Dollar is one of the least preferred currencies in the SWFX marketplace and the sentiment towards AUD/USD is strongly bearish (71% of positions are short), this currency pair was able to advance throughout the last 434 trading hours and form a Channel Up pattern. Technical studies in aggregate suggest the upward tendency will continue in the future.

AUDUSD

USD/CHF 1H Chart

Emerging Pattern: Channel Down

Just recently USD/CHF has confirmed an upper boundary of the down-sloping corridor it has been trading within, but is already eroding the falling resistance line. In order to confirm the breakout, the price should not close below 0.9499 now and is then likely to target 0.9530 next, though the rally could also extend further, up to 0.9560/50.

USDCHF