Dukascopy Bank Team
Dukascopy Bank SA
Comment: CAD/JPY confirmed a double top at 88.62 from the four hour chart with a descending channel pattern it entered over the last week. Currently on its way to the bottom trend-line at 86.35, the pair is likely to remain in the red zone for now and bounce from the area to comply with the up-wave implied by the pattern. Immediate support lies at 86.66 and the rate is now showing some trouble in diving beneath; however, we will look for the area to break to the downside, which would then open the way for 86.48/45 – the last level before the boundary.
EUR/USD 30M Chart: Descending Triangle
Comment: Following a break above the upper trend-line of the senior three-month channel, EUR/USD entered a ranging motion and could potentially have sketched a double top formation at 1.0675. Most recent movements indicate a small-scale descending triangle, which is about to be broken – most likely to the downside. The pair is currently on a quite crucial step, which could either confirm the trading range or the double top, with strong bearish pressures taking over in case of the latter. A break below 1.0605 would therefore mean a conclusive reversal, while a close above 1.0616, the upper trend-line of the triangle, would suggest a surge towards 1.0675.
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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