Dukascopy Bank Team
Dukascopy Bank SA
NZD/CAD 1H Chart: Channel up prevails
A descending channel has confined NZD/CAD since late August. The latest test of its bottom boundary occurred on November 17 when the New Zealand Dollar reversed to the upside and formed a channel up. In line with this pattern, the pair should still appreciate up to the 0.89 area where the upper boundaries of this pattern and the senior one are located. However, the Kiwi faces a significant resistance cluster set by the weekly and monthly PPs and the 200-hour SMA in the 0.8780/0.8800 territory. As suggested by technical indicators, this might mark a point of reversal. In this case, the Kiwi is likely to breach the channel up and continue trading in a newly-formed one-day channel down towards the bottom boundary of the senior pattern. The nearest support of significance is the 55-hour SMA at 0.8723; the weekly and monthly S1s are likewise located nearby circa 0.8670.
SGD/JPY 1H Chart: Rate tests short-term channel
A pattern that has dominated the SGD/JPY currency pair since late April is an ascending wedge. It seems that the maturity of this pattern could be reached within the following weeks, thus pointing to a possible breakout south. In the short term, the Singapore Dollar bounced off the upper wedge boundary early in November and has since edged lower; thus, another formation—a more chaotic channel down—is apparent on the chart. This pattern is guiding the pair towards the lower wedge boundary in the 82.60/83.00 area. The given channel is expected to dominate, thus pointing to weakening during the following week. The nearest support is the 200-hour SMA, the weekly and monthly PPs circa 83.20. The Singapore Dollar might hinder near this mark, but should eventually breach it and approach the weekly and monthly S1s at 82.60.
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.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.