GBP/NZD 1H Chart: Falling Wedge
Comment: The short-term outlook is bearish, as the pair has just bounced off the resistance trend-line. Additionally, the one-hour and four-hour technical indicators are mostly pointing south. Still, after the price touches 2.3357 there is likely to be a recovery with a subsequent upward break-out, as GBP/NZD is closing in on the apex of the falling wedge, namely a bullish pattern. This will be confirmed once we see a close above 2.36. In this case the first major target will be the 200-hour SMA at 2.39, followed by a solid resistance level at 2.46, represented by the September high. Meanwhile, the SWFX traders are almost equally divided between the bulls and bears: 53% of them are long and 47% are short.
EUR/PLN 1H Chart: Rising Wedge
Comment: EUR/PLN is approaching the August peak, which is expected to be a turning point for the currency pair’s two-week recovery. A dip beneath 4.25 (up-trend and weekly PP) will confirm a bearish break-out, and there are unlikely to be any significant rallies before the price hits 4.2350, where the 200-hour SMA coincides with the weekly S1. In the long run, however, the sell-off will be expected to extend down to the last month’s minimum at 4.18. On the other hand, if the Euro manages to climb over 4.27, it will open a way towards 4.37, which is so far this year’s highest point. The SWFX traders’ sentiment is negative, being that only 28% of market participants are currently holding long positions.
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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