Dukascopy Bank Team
Dukascopy Bank SA
EUR/CAD 4H Chart: Channel Down
Comment: EUR/CAD exhibits strong bearish momentum. The currency pair has recently violated several notable 2013 lows, and it seems ready to extend the losses even further. The immediate support is at 1.33, represented by the weekly S2, monthly S3, and lower boundary of the channel. Accordingly, there is a good chance we are going to see an upward correction from there. In the meantime, the rallies should be limited by the supply area around 1.35, which is implied by the weekly S1 level and the upper boundary of the channel. As for the SWFX sentiment, the traders seem undecided with respect to the pair. Right now 47% of positions are long and 53% are short.
EUR/USD 1H Chart: Channel Down
Comment: EUR/USD is relentlessly moving towards the parity, but is being sold off accurately within the boundaries of a bearish channel. At the moment the exchange rate is undergoing a bullish correction; however, the buying pressure is expected to subside as soon as the Euro reaches 1.06, where resistance is created by the trend-line together with the daily PP and weekly S2 levels. There the pair will be in a good position to target 1.0467, then 1.0386. Meanwhile, the SWFX traders’ sentiment is almost perfectly neutral, as 49% of open positions are long and 51% are short, and the technical indicators are mixed on all three relevant time-frames.
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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