Dukascopy Bank Team
Dukascopy Bank SA
GBP/CAD1H Chart: Rising Wedge
Comment: After the bottom of four years was set at 1.5769, GBP/CAD started a climb towards areas above, and has now created a rising wedge on the hourly chart, indicating that upward momentum has encountered some trouble. The pair is currently testing the upper boundary for the second consecutive time, suggesting that upside risks cannot be completely eliminated as well. The upside area is strengthened by the upper Bollinger Band at 1.7645, but support lies below at 1.7578 and might come into play at the same time as the bottom trend-line of the wedge which could then break and start a slip.
NZD/JPY 1H Chart: Falling Wedge
Comment: NZD/JPY continued its strong downtrend that was kicked off by a double top in January, but after a break above the channel that had led it to the current levels, the pair set a falling wedge in motion, suggesting that some more upside pressures are to take over. The wedge formed over this week after the pair opened with a gap, and is now keeping the rate near the middle with short-term risks skewed a little more to the upside than to the downside. We will now look for tests of the upper trend-line around 76.55, which could then ultimately lead to a break above and a soar.
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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