Dukascopy Bank Team
Dukascopy Bank SA
USD/ZAR 4H Chart: Channel Down
Comment: USD/ZAR has recently proven there is a dense supply area between 11.75 and 11.80 the pair is currently unable to penetrate. As a result, the US Dollar has been in a down-trend since the mid-December, and the currency is likely to continue to weaken, given that the bearish channel has been formed. However, right now USD/ZAR is undergoing an upward correction that has a good chance of extending through the immediate resistance at 11.59, represented by the 200-period SMA, towards the falling trend-line at 11.70. Subsequently, the bears should regain control of the market and push the price back to the lower boundary of the pattern at 11.35.
GBP/JPY 4H Chart: Double Bottom
Comment: A sell-off from 187 encountered a strong demand level at 176, leading to emergence of two distinct bottoms. Accordingly, there is an increased probability of a pronounced rally, though GBP/JPY must first surpass the Jan 20 high, which is the neck-line of the pattern. If this is the case, the first target will be 182.40, where the monthly S1 level merges with the 200-period SMA. The second target will be at 186, represented by the monthly PP, followed by this year’s maximum at 187. At the same time, violation of the Jan 25 low at 175.80 will invalidate the bullish scenario and imply continuation of the Pound’s depreciation against the Yen.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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