AUD/CAD 4H Chart: Channel Up
Comment: AUD/CAD has been bullish since the very beginning of November, and considering that the pair has already surpassed the March high, the recovery is expected to continue, and the target is this year’s maximum at 1.0090. Additional argument in favour of the bullish outlook is sentiment: 72% of open positions are short. In the near term, however, we are likely to see a sell-off, as the price has just encountered the upper boundary of the channel. The losses are to be limited by the rising support line at 0.9800/0.9792. But if this is not the case, and the rate dips lower, the focus should shift to supports at 0.9586 (November 27 low) and 0.9550 (monthly PP and 200-period SMA).
NZD/CAD 4H Chart: Channel Up
Comment: The situation in NZD/CAD bears an uncanny resemblance to the one observed in AUD/CAD. Here, also, the overall outlook is bullish, while in the short run there is likely to be a correction. The decline is expected to end near the rising trend-line at 0.9040, whereas in the long run the price could be aiming for the March high, being that there are no significant resistances until 0.9620. At the same time, a close beneath 0.9040 will substantially increase the downside risks, but the bulls will still have a good chance to recover from the support area between 0.8950 and 0.8920. More clusters of buyers are assumed to be at 0.8850 and at 0.8810/0.8790 (weekly S1 and 200-period SMA).
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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