Dukascopy Bank Team
Dukascopy Bank SA
NZD/CAD 1H Chart: Channel Down
Comment: We hold a bearish outlook on the New Zealand Dollar this week. The currency pair has recently broken through the long-term moving average and formed a descending channel. The near-term rallies are to be capped by the falling resistance line at 0.9426, while the target is the December 15 low at 0.9242. However, the upside risks are not negligible. First, most of the daily technical indicators are giving ‘buy’ signals. Secondly, the Kiwi is oversold in the SWFX market, being that 73% of positions are already short. Above 0.9426 will likely aim for the 200-hour SMA at 0.9468 and the weekly PP at 0.9491. Additional resistance is at 0.9546/33, created by the December 31 high and weekly R1.
GBP/JPY 4H Chart: Channel Down
Comment: There is a plethora of reasons to be short the Pound against the Yen. The main one is the fact that GBP/JPY is currently trading in a well-defined bearish channel. Additionally, there is plenty of room for new sellers, as 62% of open positions are long. At the same time, the pair is now facing a key support level—the 2015 low that is also reinforced by the weekly S2 and a falling trend-line. Accordingly, in the short run we expect the price to rise back to the upper boundary of the channel. The deciding factor will then be which of the key levels is going to be broken first—either 177.20 or 174.90. In the first case the rate is to aim for the Dec 28 high at 180, and in the second case it is to target 2014 Oct low at 168.
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 consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Pepe price forecast: Eyes for 30% rally
Pepe’s price broke and closed above the descending trendline on Thursday, eyeing for a rally. On-chain data hints at a bullish move as PEPE’s dormant wallets are active, and the long-to-short ratio is above one.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.