Dukascopy Bank Team
Dukascopy Bank SA
EUR/PLN 4H Chart: Channel Up
Comment: The upward-sloping channel that is currently developing on the hourly chart may be deceiving. In fact, the currency pair is closing in on the resistance line at 4.11, which may well trigger a strong sell-off, and the weekly technical indicators are in favour of this scenario. The decline is expected to result in a breach of all the support levels until 4.04, where EUR/PLN is likely to meet the lower edge of the pattern, along with the 200-period SMA.
Meanwhile, the SWFX market participants are strongly convinced that the Euro is going to appreciate further relative to the Polish Zloty, as evidenced by a high percentage of longs—71% of all open positions.
AUD/NZD 4H Chart: Channel Up
Comment: After demand at 1.00 stopped the bears who had been in control of the pair since the beginning of November, AUD/NZD started to climb upwards, and eventually the currency pair formed a bullish channel. For now the currency pair is consolidating, but the dips should be limited by the rising support line together with the weekly R1 at 1.0739. Once this phase is completed, the target will be 1.11, the current location of the weekly and monthly R3 level, but more importantly, this is where upper boundary of the pattern is likely to be challenged. At the same time, the SWFX traders share the positive sentiment towards the Aussie, being that as many as 68% of positions are long.
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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