Dukascopy Bank Team
Dukascopy Bank SA
EUR/NOK 1H Chart: Ascending Triangle
Comment: Despite the recent inability of EUR/NOK to push through resistance at 9.5950 the outlook on the currency pair is strongly bullish. The main argument is that the price has formed an ascending triangle after a run from 9.10. Additionally, the longer-term technical indicators are mostly pointing upwards, and the Euro is oversold—72% of open positions in SWFX market are short at the moment. Accordingly, EUR/NOK is expected to close above 9.5950 and then keep advancing north. The September high at 9.63 is likely to be the next target. In the meantime, in case of a breach of the support trend-line at 9.4950 we could see a test of the December 10 low and 200-hour SMA near 9.43.
CHF/SGD 1H Chart: Channel Up
Comment: CHF/SGD is trying to negate the losses of the last three months right now, and the latest rally has already offset a half of them. There are also plenty of reasons to believe that the rate will be able to extend the recovery further. First of all, the pair is currently trading between two parallel ascending trend-lines. Secondly, the Swiss Franc is oversold relative to the Singapore Dollar—63% of positions are short. Finally, the four-hour and daily indicators are largely sending ‘buy’ signals. Even if support at 1.4310 is broken, there will still be a good opportunity for the bulls to regain control at 1.4167/56, where the December 10 low merges with the 200-hour SMA.
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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