In Swissquote’s Tuesday 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: The support at 0.8891 has been breached
• AUD/USD has breached the support at 0.8891. The short-term technical structure is negative as long as prices remain below the resistance at 0.9002 (19/09/2014 high). Another resistance stands at 0.9112 (16/09/2014 high).
• In the long-term, the underlying trend is negative. The lack of base formation on January 2014 and the current sharp decline favour a test of the strong support at 0.8660 (24/01/2014 low). Another strong support lies at 0.8067 (25/05/2010 low).
EUR/GBP: Pickup in buying interest
• EUR/GBP made a sharp bullish intraday reversal on Friday (hammer) indicating exhaustion in short-term selling pressures. Hourly resistances for a short-term bounce can be found at 0.7915 (18/09/2014 high) and 0.7952 (intraday high). An hourly support now stands at 0.7810 (19/09/2014 low).
• In the longer term, the underlying downtrend favours a test of the major support area between 0.7755 (23/07/2012 low) and 0.7694 (20/10/2008 low) at minimum. A break of the resistance at 0.8034 (25/06/2014 high) is needed to suggest some exhaustion in the medium-term selling pressures.
