Dukascopy Bank Team
Dukascopy Bank SA
NZD/CAD 4H Chart: Channel Up
Comment: The outlook on NZD/CAD is bullish. First, the currency pair has recently formed an upward-sloping channel. Second, most of the technical indicators on all three relevant time-frames are currently pointing up.
However, there is a strong resistance level at 0.94 that may prevent further appreciation of the New Zealand Dollar, represented by the 2014 Jun and Jul highs. If this obstacle is overcome and the up-trend at 0.94 remains intact, the price will likely target 0.96 next, namely the 2014 May peak. At the same time, the SWFX market is pessimistic with respect to the bullish potential of the Kiwi, being that three out of four open positions on NZD/CAD are short.
CAD/JPY 4H Chart: Channel Up
Comment: Though CAD/JPY is currently trading in an up-trend, long positions still appear to be quite risky, considering that the market is bearish. Although the pair has broken the 23.6% Fibonacci retracement of the Dec 7—Jan 30 down-move, the outlook will be negative as long as 99.00 (50% Fibo and 2014 Dec low) acts as resistance. Another source of concern is the technical studies that are bullish on the four-hour chart, but do not favour a rally in the long run. Nonetheless, taking into account dense support at 95.20, CAD/JPY may well rise up to 97.40 (38.2% Fibo and up-trend) before leaving the boundaries of the channel to the downside. As for the sentiment, 65% of open positions are short.
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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