Dukascopy Bank Team
Dukascopy Bank SA
NZD/CAD 4H Chart: Channel Down
Comment: NZD/CAD has recently paused its recovery from 0.83, and the correction has taken the form of a channel. However, in the near term perspectives are bullish, being that the currency pair is trading at the lower edge of the pattern at the moment. Accordingly, there is a good chance the price will rebound from 0.9130 and rise up to 0.9360 during the next few weeks. There the rate should be stopped and turned around by the resistance trend-line and the 200-period SMA. If this is not the case and NZD/CAD dips through the lower boundary of the channel, our focus will shift to 0.8970, where the monthly S1 merges with the weekly S2 level.
EUR/TRY 4H Chart: Rising Wedge
Comment: Bullish momentum of EUR/TRY appears to be dying out, as the pair is forming a rising wedge. Nevertheless, in the short run there is high possibility of a rally, considering that the price is currently fluctuating next to the strong demand area, created by the rising trend-line, 200-period SMA, and the January 22 low. The current target is a solid resistance level at 3.34.
In the longer term, however, the risks are skewed to the downside. Once below 3.24, the Euro should gravitate towards 3.17 (monthly PP and Dec 31 low). The next objective will be at 3.10, where EUR/TRY is expected to come into contact with the major trend-line connecting last year’s January, July, and November lows.
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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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