Dukascopy Bank Team
Dukascopy Bank SA
EUR/PLN 1H Chart: Channel Up
Comment: The currency pair’s risks are skewed to the upside. EUR/PLN has recently broken through the three-and-a-half-month down-trend and has formed a bullish channel. The Euro is expected to rebound from a solid support area at 4.2970 and surpass this month’s high at 4.3127—the target is the upper boundary of the pattern, which is likely to be tested at 4.3230. The sentiment in the SWFX market (28% of positions are long and 72% are short), is in favour of Euro’s recovery. In case the price dips under the lower boundary of the channel, the focus will shift to the Apr 15 low and 200-hour SMA circa 4.29, while an additional demand area is supposed to be at 4.2840/30, created by the daily S2 and weekly S1.
USD/CAD 4H Chart: Channel Down
Comment: The outlook on USD/CAD is strongly bearish. Last month, the currency pair breached the 21-month trend-line, which paved the way for a test of the lowest level since October 2015, and the next prominent low is only at 1.2130, represented by the June 2015 minimum. At the same time, the upside is limited by a major down-trend that has been guiding the pair south since the end of January. Moreover, daily and weekly technical indicators also imply a sell-off. During this week, USD/CAD is likely to bounce off of 1.3040 and slide down to 1.2740/00, where it is going to find support provided by the monthly S1 and the lower boundary of the emerging bearish channel.
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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