Dukascopy Bank Team
Dukascopy Bank SA
USD/NOK 4H Chart: Double Bottom
Comment: USD/NOK has formed a double bottom at the end of the Sep 28-Oct 12 sell-off, meaning the Dollar is now well-positioned to negate these losses. The pattern and the bullish outlook will be confirmed when the currency pair gains a solid foothold above 8.1970/8.1750, a dense supply area created by the Oct 13 high, monthly S1 and weekly PP. If this is the case, the first major target will be the 200-period moving average at 8.2675, but given the height of the pattern the rally will likely extend higher, potentially up to 8.32.
At the same time, a close beneath 8.05 will invalidate this scenario, and we will then wait for a test of the 200-day SMA at 7.95.
EUR/NZD 4H Chart: Channel Down
Comment: Our bias towards the Euro-Kiwi pair is negative. The price has recently broken through the long-term moving average and formed a bearish channel. Additionally, the four-hour and daily indicators are predominantly giving ’sell’ signals.
In the very near term, however, there is a high probability of an upward correction, being that the spot is currently at the lower trend-line that forms the pattern. Support at 1.65 is also implied by the monthly S3, weekly S2 and August low, meaning it is unlikely to be breached easily. In the meantime, the market is undecided with respect to EUR/NZD: 47% of the traders are bullish and 53% of them are bearish.
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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