GBP/NZD 1H Chart: Rising Wedge

GBPNZD

Comment: The overall outlook on GBP/NZD is bullish, being that the currency pair has recently broken through the upper boundary of the falling wedge that had been previously formed in the daily chart. Considering shorter-term developments, namely the price approaching the apex of the rising wedge in the hourly chart, there is likely to be a sell-off from 2.1244/28 (up-trend, daily R1 and Mar 29 high) before the Sterling resumes its long-run recovery. In the end, the rate may slide down to 2.08/2.07 before the bulls are able to regain control of it. Nevertheless, there is still a decent chance that the dip will be limited by a rising support line at 2.0950 that was established last week.

 

EUR/JPY 4H Chart: Rising Wedge

EURJPY

Comment: Euro’s rally from 121.70 is about to come to an end. The main reason to be bearish on the pair is the major down-trend line near 128 yen. Resistance there is also strengthened by the weekly R2 and March high. At the same time a little closer to the spot price, there is the monthly pivot point at 126.14, which is fully capable of preventing further appreciation as well. As a result, we expect EUR/JPY to violate the lower boundary of the emerging pattern in the nearest future. The first target will then be yesterday’s low at 124.70, followed by the monthly S1 and weekly PP at 124.25/06. A yet another ‘sell’ signal is provided by positioning of traders in the SWFX market: 73% are already bulls and only 27% are bears.


 

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


Recommended Content

Editors’ Picks

BoE set to maintain bank rate at 5%, how will Pound Sterling react? – LIVE

BoE set to maintain bank rate at 5%, how will Pound Sterling react? – LIVE

Following August's 25 basis points cut, the Bank of England (BoE) is forecast to maintain the bank rate at 5%. The statement language and the vote split could provide important clues about the policy outlook and drive GBP/USD's action.

FOLLOW US LIVE
EUR/USD rises further toward 1.1200, focus shifts to ECB-speak

EUR/USD rises further toward 1.1200, focus shifts to ECB-speak

EUR/USD stays strongly bid toward 1.1200 in the European session on Thursday. The pair capitalizes on a renewed US Dollar retreat and an upbeat mood. Traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed. 

EUR/USD News
Gold hovers close to new high of $2,600 after Fed meeting

Gold hovers close to new high of $2,600 after Fed meeting

Gold (XAU/USD) edges higher and trades back in the $2,580s on Thursday after falling to the $2,540s following the US Federal Reserve (Fed) decision on interest rates the prior day.

Gold News
Solana announces details of Seeker, second mobile device after Saga phone

Solana announces details of Seeker, second mobile device after Saga phone

Solana Lab’s second phone, Seeker, is set to launch in 2025. At Token2049, a global conference for crypto, Solana’s General Manager Emmett Hollyer said that the new mobile would be a “rewards magnet” for its users.

Read more
BoE expected to keep interest rate unchanged at 5% as price pressures persist

BoE expected to keep interest rate unchanged at 5% as price pressures persist

After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.

Read more
Moneta Markets review 2024: All you need to know

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.

Read More

Majors

Cryptocurrencies

Signatures