Dukascopy Bank Team
Dukascopy Bank SA
EUR/TRY 4H Chart: Channel Down
Comment: Despite a massive sell-off amid Draghi’s press conference yesterday, EUR/TRY managed to stay within the boundaries of the channel. At the moment the currency pair is trading right at the lower trend-line, meaning we should see a rally in the near term. The bullish correction is likely to result in a test of the monthly S1 at 3.2739, but the recovery may extend up to the falling trend-line without threatening the overall negative outlook. Even if the price closes above 3.3158, there is a cluster of resistances around 3.37 (Oct 14 high, monthly PP, 200-period SMA) that the pair should have trouble eroding. Our main target is the August low at 3.02.
GBP/JPY 4H Chart: Channel Up
Comment: There is a bullish channel emerging in the hourly chart of GBP/JPY. In the short run, however, the pair may face difficulties advancing beyond 186.40, where the rising resistance line merges with the monthly R1. Accordingly, we expect a decline back to 184.20 or possibly to 183.50 before the bulls regain control of the market. A close above 186.40 will imply further recovery, potentially up to the September high at 188.40. At the same time, if the pair breaches support at 183.50, the price will be expected to keep sliding lower until it hits 180.50, namely the last month’s minimum. The SWFX traders’ sentiment is strongly bullish: 70% of positions are long.
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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