Dukascopy Bank Team
Dukascopy Bank SA
EUR/NOK 4H Chart: Channel Down
Comment: The Euro has been consistently underperforming the Norwegian Krone lately. Accordingly, EUR/NOK has formed a bearish channel, and the bias therefore is negative, especially since the currency pair is now trading right beneath the resistance trend-line. However, we should note that the upside risks are increasing, being that the price remains unable to break support at 8.3252. Once the April low is overcome, we will be looking at 8.08 as the next target. On the other hand, a close above 8.4129 will not invalidate the bearish outlook, since there still will be a dense supply area around 8.53, where the weekly R1 merges with the monthly PP, 200-period SMA, and also Apr 23 high.
CAD/JPY 4H Chart: Channel Up
Comment: The Yen seems to be losing ground across the board, and CAD/JPY is not an exception. The positive outlook is also reinforced by the fact that the pair has formed a well-defined channel, which implies a rally towards 101.74 during the next few days. Moreover, the four-hour and daily technical indicators are mostly pointing north. However, there are also plenty of reasons for concern. First, the May 5 high proves to be durable, and there is a bearish bias among the weekly studies. If support at 99.00 fails is violated, additional demand is supposed to be at 98.40, but there may well be a larger sell-off, down to a more reliable zone around 97.40 (weekly S2, monthly PP, and 200-period SMA).
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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