Dukascopy Bank Team
Dukascopy Bank SA
EUR/USD 1H Chart: Channel Up
Comment: EUR/USD keeps forming a bullish channel after bottoming out at the beginning of the previous week. Right now the currency pair is moving away from the lower boundary of the channel towards the resistance line at 1.11, though first it will have to overcome supply at 1.1018, namely the Jul 23 high, to confirm the positive outlook. In the longer-term perspective the Euro may be targeting 1.1216 (Jul 10 high). Meanwhile, even if the price closes beneath the lower trend-line, there is an additional support area around 1.0930, created by the weekly PP, Jul 24 low and 200-hour SMA. Nevertheless, the SWFX market is sceptical about a rally, as only 42% of open positions are long.
USD/TRY 1H Chart: Channel Up
Comment: Earlier this month USD/TRY found solid support around 1.63, which allowed the US Dollar to start a recovery. Considering that the pair has formed an upward channel, the price is likely to keep rising higher, and the target is the June maximum at 2.81. In the meantime, the immediate resistance is at 2.7537, and as soon as we get to 2.78 we should expect a downward correction. As for supports, the closest one is an upward-sloping trend-line at 2.73, followed by a combination of the weekly and monthly PP just beneath 2.72. Despite the arguments for however, the sentiment among the market participants is strongly bearish: 74% 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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