Dukascopy Bank Team
Dukascopy Bank SA
AUD/NZD 1H Chart: Channel Up
Comment: The near-term outlook on AUD/NZD is bullish. The currency pair has just formed an ascending triangle, and most of the hourly technical indicators are pointing north. Accordingly, we expect the Aussie to rebound from 1.0650 and re-test last week’s maximum. However, the price lacks the potential to go higher, which is implied by the daily studies. In addition, the Australian Dollar is already overbought, as shown by the SWFX sentiment that is bullish with two thirds of open positions being long. Beneath the weekly pivot point AUD/NZD will have a good chance to stabilise near the 200-hour simple moving average, which at the moment can be found at 1.0632.
GBP/CAD 4H Chart: Channel Down
Comment: GBP/CAD has recently failed to pass through the resistance at 2.0960, and as a result, the pair entered a down-trend. The perspectives, however, are ambivalent. Even though the four-hour and daily technical indicators are mostly sending ‘sell’ signals, and the SWFX market is overcrowded with bulls (72% of positions are long), we may still be in a correction phase following the Dec 3-11 rally. Moreover, the long-term moving average remains beneath the spot price. Thereafter, if the Sterling breaches the major support at 2.0430/10, the currency’s bearish intentions will be confirmed, and it will likely aim for the December low at 1.9850.
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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