EUR/NZD 1H Chart: Channel Up
Comment: EUR/NZD seems to have bottomed out at 1.48 following a strong sell-off from 1.62 since mid-December. Now the pair has to respect the boundaries of the bullish channel it has formed, though the lower rising trend-line of the pattern still appears to be unreliable. At the moment the Euro is facing the resistance at 1.51 represented by the weekly pivot point, but the currency is seen as capable of rising beyond the Jan 22 high, namely to the upper trend-line at 1.55. However, the downside risks remain significant—most of the four-hour and daily technical indicators are bearish. Meanwhile, the SWFX sentiment is distinctly bullish—67% of open positions are long.
CAD/JPY 1H Chart: Falling Wedge
Comment: The Canadian Dollar has been largely underperforming the Japanese Yen since the beginning of the year, but now there is a good reversal signal—a falling wedge. The currency pair has just closed above the down-trend, meaning there is a high possibility of a rally in the nearest future. The initial target is the Jan 22 high at 96, there it merges with the weekly PP, followed by the 200-hour SMA at 97 and the Jan 20 high at 99. As for the technical indicators, hourly and four-hour studies give ‘sell’ signals. At the same time, 68% of traders hold loonie-short positions, expecting the Canadian currency to lose even more value.
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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