Dukascopy Bank Team
Dukascopy Bank SA
USD/SEK 1H Chart: Channel Up
Comment: The US Dollar has been strengthening across the board lately, and as a result has formed several well-defined bullish channels in different major pairs. In case of USD/SEK, however, the Greenback is currently struggling to overcome resistance at 8.5257, represented by the August 26 high. Accordingly, we expect a sell-off from here, but the losses should be limited by the rising support trend-line at 8.45, where from the price is expected to start a recovery to the upper edge of the pattern at 8.60 (also Aug 19 high). At the same time, the rally is implied by the hourly and four-hour technical indicators. The SWFX sentiment is bullish, as 64% of open positions are long.
USD/CAD 1H Chart: Channel Up
Comment: USD/CAD continues to trade within the boundaries of the upward-sloping channel we spotted yesterday. Since then the currency pair has confirmed the lower trend-line, and it is therefore ready to surpass last week’s high at 1.32. Once above this level, there will be very few reasons for the pair not to reach the upper trend-line at 1.3280.
Alternatively, if 1.32 stays intact and USD/CAD slides under 1.3150, the sell-off will be expected to extend down to the weekly pivot point before it tests 1.3040, namely the Oct 23 low and long-term moving average. Meanwhile, the sentiment among the SWFX traders is neutral: 46% of positions are long and 54% are short.
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.
Recommended Content
Editors’ Picks
EUR/USD holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.