Dukascopy Bank Team
Dukascopy Bank SA
USD/HKD 1H Chart: Channel Down
Comment: USD/HKD performed a sharp decline after it touched a three-day high on December 11. The slump was developed in the corridor of two downward sloping lines that act as boundaries of the 112-bar long channel down pattern. The currency couple has recently attempted to breach the upper limit of the corridor but the 200-hour SMA prevented this from happening and sent the pair back to the pattern’s area where it is trading now. Meanwhile, technical indicators are sending mixed signals, being bullish for short and long terms but pointing to a weakness in the medium term.
USD/ZAR 4H Chart: Rising Wedge
Comment: A 312-bar long rising wedge pattern formed by USD/ZAR started in the end of September when the pair was on its way to recovery after a retreat from a five-year high hit in the last days of August. Currently the pair is trading above its 50-bar SMA, albeit slightly. However, a breach of this important level is not considered to signify an upside potential as 62.50% of market participants are still bearish on the pair. To confirm traders’ expectations, the currency couple has to reverse its trend and dive below the 50-bar SMA that will add selling pressure and may lead to a fall to the pattern’s support line lying not far away from the 200-bar SMA.
EUR/SEK 4H Chart: Channel Up
Comment: An appreciation of the common currency against the Swedish Krone started in mid-September; however, the pair commenced to shape a channel up pattern only in early November when it managed to expedite the pace of its advance. Now the pair is on the downside, retreating from the pattern’s resistance it touched several days earlier. Technical data suggests the pair is likely to continue declining in the nearest term; however, indicators are neutral for longer time frame.
CAD/JPY 4H Chart: Rising Wedge
Comment: The Canadian Dollar has been rallying against the Japanese Yen since early November; a climb was performed within the limits of the rising wedge pattern that is 164-bar long now. While fluctuating between two gradually converging lines, the pair managed to attain a five-month high twice; the most recent stab to this peak led to a retreat to the 50-bar SMA, near which the pair is faltering at the moment. However, CAD/JPY may return to record highs given a strong bullishness on the market; 77.78% of traders hold long positions on the pair.
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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