Dukascopy Bank Team
Dukascopy Bank SA
USD/SEK 4H Chart: Channel Down
Comment: USD/SEK failed to sustain a rally beyond 8.80, and now the currency pair is trading within the boundaries of a bearish channel. The pattern, however, is not of the highest quality, but we are still likely to see some action near the trend-lines forming it. The upper one at 8.44 has just been confirmed, and now this is green trend-line’s turn to prove its worth by initiating an upward correction. The longer-term target is June’s low at 8.0332. At the same time, a close above 8.44 will imply a rally to the monthly PP at 8.5221, and we may well see an extension towards the Aug 19 high at 8.60. The SWFX sentiment is moderately positive: 59% of open positions are long.
EUR/JPY 4H Chart: Channel Up
Comment: The European currency seems to be recovering against the Yen between two parallel trend-lines. This implies that a test of the support area at 136.25 should trigger strong buying, while if the price rises to 139.70, there is likely to be a decline of a correctional nature. Concerning a shorter-term perspective, the outlook is bullish as well. The price has recently rebounded from the 200-period SMA, and there is still some room left to cover before an encounter with the monthly R1. The main obstacle, however, is the August 23 high standing at the level of 139 yen. Meanwhile, the distribution between the longs (57%) and shorts (43%) is slightly skewed in favour of the former.
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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