Dukascopy Bank Team
Dukascopy Bank SA
USD/TRY 1H Chart: Channel Up
Comment: USD/TRY is currently trading at the upper boundary of the channel, implying we are likely to see a bearish correction before the bulls regain control of the pair. The price is expected to bounce off of 2.92 and fall until it meets the lower boundary of the pattern at 2.89. However, there are also plenty of arguments against the immediate sell-off. First, the technical indicators are mostly pointing upwards. In addition, we have a solid demand area at 2.9030, created by the 200-hour SMA with the help of the daily and weekly pivot points. At the same time, the SWFX market already appears to be overcrowded with bears, being that they make up three fourths of all traders.
USD/JPY 4H Chart: Rectangle
Comment: USD/JPY has been trading between two parallel horizontal lines for four full weeks now, and for the time being there is not much evidence that there is going to be a break-out in the nearest future. The risks, however, are considered to be skewed to the upside. Even though the technical indicators are currently mixed, the US Dollar is heavily oversold, being that 72% of open positions are short. At the same time, before the pair entered the continuation pattern, it had been bullish, which further bolsters the point that eventually the rate will surpass tough resistance at 123.76/61. This in turn will pave the way for a recovery to 125.20, namely the August high.
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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