Dukascopy Bank Team
Dukascopy Bank SA
GBP/CAD 1H Chart: Channel Down
Comment: The GBP/CAD cross has been trading inside the bearish pattern since early November, after reaching a three month high at 1.8290.
The currency pair is nearing the upper trend line of the pattern that is located just few pips away from the weekly PP at 1.7811. Most likely the Pound will reach the resistance line; however, a bullish break-out is not anticipated for the time being. The technical indicators are mixed; however, many of them are neutral. Also, the SWFX traders’ are uncertain about the next movements of the pair, as the sentiment is neutral with 51.78% of them expecting that the Sterling will outperform the Canadian peer.
EUR/HKD 4H Chart: Broadening Falling Wedge
Comment: The Euro has been loosing ground against the Hong Kong’s Dollar already since the beginning of May; moreover, it entered a broadening falling wedge pattern on 16th of October.
The formation of the falling wedge pattern could point on changes in the current trend, since this is a reversal pattern. The SWFX market participants have the same idea about the current development of the pair, as 72.34% of them have opened a long positions. The 1H technical studies are also bullish, thus increasing the possibility of an advance in the short-term even more. The target level is the 10.00 mark, while in the shorter term monthly PP; weekly and daily R2 around 9.80.
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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