Dukascopy Bank Team
Dukascopy Bank SA
EUR/CAD 1H Chart: Double Bottom
Comment: Following a massive sell-off that occurred earlier this month, EUR/CAD hit a strong support level at 1.4671 that did not allow the Euro to depreciate any further. As a result, there is a possibility the currency pair has formed a double bottom, a pattern that implies a reversal. Accordingly, in case the resistance at 1.4742 is broken, EUR/CAD will have a decent chance to recover all of the recent losses. However, on its way to the Jun 6 high at 1.4956 the rate will have to face a number of fairly tough resistances, such as the one at 1.4793, formed by the daily R2 and 200-hour SMA. On the other hand, the sentiment of the SWFX market is strongly bullish—62% of open positions are long.
USD/SEK 1H Chart: Channel Down
Comment: As USD/SEK failed to cross the Jun 12 high at 6.7082, it was forced to decline. Considering that the currency pair formed a bearish channel, the sell-off is likely to persist. Moreover, most of the hourly and four-hour technical indicators are pointing downwards, hardening the case of further depreciation of the U.S. Dollar.
In order to confirm this USD/SEK needs to bounce off the upper boundary of the pattern at 6.6394 and then plunge down to the lower boundary at 6.6106, which is currently reinforced by the daily S1. At the same time, most of the market participants expect the greenback to underperform—merely 28% of positions are long.
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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