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 a strong support area
• EUR/USD has broken the strong support at 1.2755 and is now challenging the one at 1.2662. The short-term momentum is negative as long as prices remain below the hourly resistance at 1.2901 (23/09/2014 high). An initial resistance can be found at 1.2816 (22/09/2014 low).
• In the longer term, EUR/USD is in a succession of lower highs and lower lows since May 2014. The strong support area between 1.2755 (09/07/2013 low) and 1.2662 (13/11/2012 low) is challenged. An eventual break lower is expected. A resistance lies at 1.2995 (16/09/2014 high). Another strong support lies at 1.2043 (24/07/2012 low).
AUD/USD: Challenging its strong support at 0.8660
• AUD/USD continues its steep decline and is now close to its strong support at 0.8660. Hourly resistances can be found at 0.8826 (intraday high) and 0.8927 (23/09/2014 high).
• In the long-term, the underlying trend is negative. Monitor the test of the strong support at 0.8660 (24/01/2014 low). Another strong support lies at 0.8067 (25/05/2010 low).
