Dukascopy Bank Team
Dukascopy Bank SA
XAU/USD 4H Chart: Falling Wedge
Comment: The XAU/USD pair is poised for more weakness in the near-term. Technical indicators in the short and medium timeframes support this outlook, with the closest strong demand located at 1,207.50, represented by the March low and the weekly S1. The pair is expected to eventually reach the 1,200 mark and rebound from the monthly S1 and the falling wedge’s lower border. In case the bullish momentum prevails, gold is to make its way towards 1,235 level, namely the wedge’s resistance line, which is reinforced by the 55 and 100-day SMAs. A breach of this area is to open the door for the cross to reach March high at 1,285. Most traders also have a negative outlook towards XAU/USD, as 53% of all open positions are currently short.
NZD/USD 1H Chart: Channel Up
Comment: The NZD/USD currency pair has been trading within the borders of an ascending channel since the middle of March. The pair recently confirmed the upper trend-line and is now undergoing a bearish correction towards the channel’s support line. However, according to technical indicators, the Kiwi is set for a period of consolidation for the whole week and is unlikely to reach the 0.6750 level by week’s end. The New Zealand Dollar appears to be struggling to climb over the 200-hour SMA, which is bolstered by the daily PP and today also by the 100-hour SMA. In case the bearish scenario prevails, strong demand cluster around 0.68 is to limit sharper dips. Market sentiment, however, is bearish, with 56% of traders hold short positions.
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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