Dukascopy Bank Team
Dukascopy Bank SA
CAD/CHF 1H Chart: Triangle
Comment: Although CAD/CHF has recently broken the support trend-line to the downside and the technical indicators are either bearish or neutral, the currency pair retains a good chance to recover. There is a new up-trend at 0.7555, and an additional support area is at 0.7545, created by the recent lows and 200-hour SMA. If the latter level is violated, however, the outlook will be changed to bearish. On the other hand, a close above 0.7580 in the nearest future will imply continuation of the rally up to 0.7650/40, namely the June high and weekly R1. In the meantime, the market is oversold, being that 69% of open positions are currently short.
USD/NOK 1H Chart: Channel Up
Comment: USD/NOK appears to be forming a bullish channel at the moment. And while we expect a sell-off from the current levels down to the lower boundary of the pattern, demand circa 8.55 should be enough to stop Dollar’s depreciation and trigger a rally, as a result of which the price should return back to the upper trend-line of the channel.
However, if the exchange rate drops under 8.53 in the process, the downward pressure will likely intensify. In this case the first main target will be the weekly S1 at 8.5070, followed by the November 2 low at 8.4317. Meanwhile, the SWFX market is dominated by bears, as 72% of open positions are presently 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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