Dukascopy Bank Team
Dukascopy Bank SA
EUR/TRY 1H Chart: Channel Down
Comment: EUR/TRY keeps trading within a well-defined descending channel we found last week, which implies that the overall outlook remains bearish. We expect a decline in the near term as well, considering that the currency pair is right at the upper boundary of the pattern. The gains are to be limited by the falling resistance line at 3.0350, while the target is 2.9880, where the lower trend-line merges with the daily S3 and weekly S1 levels. At the same time, the technical indicators in all time-frames are mixed, and we should not exclude the possibility of a rally through 3.0350, which will likely mean a recovery: first to 3.0440, then up to the earlier highs and 200-hour SMA circa 3.0650.
AUD/CAD 1H Chart: Descending Triangle
Comment: Although AUD/CAD has recently formed a descending triangle, which usually portends a sell-off, the pair resumed the rally from 0.9440, and it is now headed towards the Nov 20 high at 0.9668. If the latter resistance is broken as well, the next target could be 0.9750, namely the May high and weekly R1. On the other hand, violation of 0.96 will mean a change in the outlook. The next support will then be at 0.9590, but the price will likely decline deeper, down to a dense demand area around 0.9515, created by the daily S3, weekly S1 and 200-hour SMA. As for the sentiment, the SWFX market participants seem to be undecided: 48% of open positions are long and 52% 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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