Dukascopy Bank Team
Dukascopy Bank SA
NZD/USD 4H Chart: Channel Up
Comment: The upward correction of NZD/USD in the bearish market took the form of a bullish channel. Looking at the four-hour and daily technical indicators, there is still some momentum left. The pair may well find support near 0.75 and attempt to recover to 0.77.
However, the risks in the longer term are heavily skewed to the downside, as evidenced by the studies on the weekly time-frame and a 18.45% drop in NZD/USD between July and January. Meanwhile, the SWFX market participants appear to be undecided with respect to the New Zealand Dollar, being that the amounts of long and short positions are currently equal.
EUR/NZD 4H Chart: Channel Down
Comment: As EUR/NZD failed to rally beyond 1.5830 during the first days of February, the currency pair is now headed toward this year’s lowest point just beneath 1.48. After a contact with this support the bulls will be expected to push the price back, but the retracement is unlikely to extend further than 1.50, where the multi-week down-trend coincides with the monthly S1 level, creating a potential ceiling. There the Euro will be in a good position to slide under 1.48.
The overall negative bias is also implied by the technical indicators on all three relevant time-frames. On the other hand, the difference between the bulls (46%) and bears (54%) is insignificant.
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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