Dukascopy Bank Team
Dukascopy Bank SA
AUD/NZD 1H Chart: Descending Triangle
Comment: The hourly chart of AUD/NZD suggests the pair is likely to keep moving lower. Apart from the descending triangle that implies growing selling pressure, the negative bias is strengthened by the technical indicators and the trend-lines. Even if the price escapes the boundaries of the pattern to the upside, potential gains should be limited by supply at 1.0920. Additional resistances are at 1.0960 (down-trend plus 200-hour SMA) and at 1.0985 (weekly PP plus Oct 6 high). The main scenario is a close below 1.0865 and extension of the decline through the weekly pivots down to 1.0711, namely the June low. Nevertheless, the SWFX sentiment is distinctly bullish: 72% of positions are long.
USD/NOK 1H Chart: Channel Down
Comment: The US Dollar continues to negate gains made in the second half of September. In the short run the value of the currency may rise, but the rally is expected to be capped by the upper boundary of the channel at 8.3017. However, if USD/NOK jumps higher, the 200-hour SMA at 8.3554 should become the next target. In the meantime, the immediate support at 8.2270 is represented by the Oct 7 low, a breach of which will pave the way for a sell-off down to the lower trend-line at 8.1792. The longer-term target is September’s minimum that coincides with the weekly S2 at 8.16. The sentiment is only slight bullish: 56% of positions are long and 44% 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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