Dukascopy Bank Team
Dukascopy Bank SA
EUR/TRY 4H Chart: Channel Up
Comment: The Euro is well-positioned to keep advancing. From below EUR/TRY is underpinned by 3.35, where the lower boundary of the pattern coincides with the weekly S1 and Sep 22 low. Additional supports are the 200-period SMA and Aug 31 low at 3.31 and 3.25 respectively. The main resistance is at 3.48, represented by this month’s high and monthly R1. A close above this serious obstacle will confirm pair’s long-term bullish intentions, but there is likely to be a selloff from 3.5336, where we have the upper boundary of the channel. Still, even despite the bullish technical indicators, the sentiment in the SWFX market is distinctly bearish: 69% of open positions are short.
CAD/CHF 4H Chart: Channel Down
Comment: We hold a negative bias with respect to CAD/CHF. The currency pair continues to trade under the falling resistance line, and recently it has entered a bearish channel. Accordingly, we expect the current rally to be rejected by 0.7350, which should be followed by a decline to 0.7240, where the support line coincides with the Sep 24 low and weekly S2. Additional reason to be bearish the Canadian Dollar is the technical studies, a majority of which is pointing south. A breach of 0.7350 however, will invalidate the negative outlook, and the rate will be expected to test September high at 0.7450. Meanwhile, the SWFX market participants are equally divided between the bulls and bears.
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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