Dukascopy Bank Team
Dukascopy Bank SA
EUR/PLN 1H Chart: Channel Down
Comment: The Euro has been underperforming the Polish Zloty since the beginning of this year, and the currency is likely to lose even more value in the future. EUR/PLN has formed a bearish channel, and it is thus expected to update March low while staying beneath the down-trend currently at 4.1220. Additional demand is seen near 4.1057, where the daily S1 merges with the weekly S1. However, it should be noticed that the currency pair is approaching the 2014 low (4.0921), a test of which may well result in violation of the upper boundary of the channel. It is possible the SWFX sentiment is distinctly bullish (74% of open positions are long) for this particular reason.
AUD/NZD 1H Chart: Rectangle
Comment: Taking into account the most recent developments, AUD/NZD is poised for a pronounced rally. There has just been a strong up-move, followed by a consolidation phase, as fluctuations of the price were contained between resistance at 1.0503 and support at 1.0485. However, a breach of 1.05 may not result in a long-lived recovery, as there is supposedly a dense supply area at 1.0544, created by the daily R3 and, more importantly, by a multi-month falling trend-line that connects the November 2014 and January 2015 highs. Nevertheless, the distribution between the long and short positions is heavily skewed in favour of the former, who take up 71% of the market.
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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