Dukascopy Bank Team
Dukascopy Bank SA
EUR/NOK 1H Chart: Channel Up
Comment: EUR/NOK is currently trading within the boundaries of the ascending channel, but the upside potential is limited. The pair is expected to rebound from 9.61, but the ensuing rally should be stopped by the resistance area between 9.74 and 9.77. There, apart of the upper boundary of the channel, we have the weekly R2, January high, and more importantly, the 14-month resistance trend-line, which at the same time is the upper boundary of the rising wedge emerging in the daily chart. Accordingly, after a test of 9.77/9.74 the price is likely to pierce through the weekly pivots and 200-hour SMA and eventually fall down to 9.44 kroner.
NZD/CAD 1H Chart: Channel Up
Comment: NZD/CAD has recently broken out of the channel it had been forming between Dec 22 and Feb 10. Therefore, the outlook on the currency pair is bullish, especially considering that the hourly and the four-hour technical indicators are pointing upwards. In the short run, however, there is likely to be a sell-off, as the price has just confirmed the upper boundary of the new channel. NZD/CAD is expected to bounce off of 0.9350 and descend down to 92 cents before there is another decent wave higher. The new target will then be the January 19 high at 0.9460. In the meantime, the sentiment in the SWFX market is neutral, being that 45% of positions are long and 55% 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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