Dukascopy Bank Team
Dukascopy Bank SA
NZD/USD 4H Chart: Channel Up
Comment: In the short run the Kiwi is bearish, as it has just bounced off of resistance line, but in the longer-term perspective we consider the outlook to be positive. NZD/USD is expected to end the current downward correction near 0.67 and then resume the rally the pair started in mid-November. After surpassing the December 15 high the next potential target could be 0.69, namely the October high. On the other hand, in case of a dip through 0.67 the bulls will still have a good opportunity to recuperate around 0.66, being that this support is created by the weekly S1, monthly PP and the long-term moving average. At the same time, the New Zealand Dollar is oversold—62% of open positions are short.
EUR/JPY 1H Chart: Channel Down
Comment: The bearish pattern we have spotted at the end of the previous week continues to develop. Since last Friday EUR/JPY has managed to confirm both trend-lines forming the channel. Consequently, we expect the price to top out at 133.50 and give way for a new bearish wave that could potentially extend down to 132 yen. Alternatively, if the indicators turn out to be true and the rate jumps above the falling trend-line and the 200-hour SMA, the bulls will likely push the pair up to the level of 134 yen, where resistance is represented by the weekly R1 and some of the recent highs. Meanwhile, the SWFX sentiment is slightly bearish—57% of positions 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.
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