Dukascopy Bank Team
Dukascopy Bank SA
NZD/CAD 1H Chart: Channel Down
The New Zealand Dollar has been trading in a four-week descending channel against its Canadian counterpart. After reaching the lower channel boundary circa 0.8750 (one-year low), the pair entered a minor consolidation period. Subsequently, it failed to form a wave down right away, but remained near the upper channel boundary—a signal indicating that bulls might eventually take the upper hand. However, this level is reinforced by the monthly S1, the 100-, 55– and 200-hour SMAs and the weekly PP. Without bulls pushing aggressively, the Kiwi is unlikely to overcome this area. This scenario is likewise supported by bearish technical indicators that favour the rate initiating a new wave down. This fall might be halted by the weekly S1 or the monthly S2 at 0.8733 and 0.8662, respectively, as the Kiwi is not expected to decline even further.
XAG/USD 1H Chart: Falling Wedge
Following a mediate-term decline that ended in early July, XAD/USD started to trade in an ascending channel. Its highest peak was reached on September 8 when the pair tested a four-month high at 18.22. Subsequently, another pattern—a falling wedge—was formed. Given the narrow range of the latter, it might be assumed that a breakout is likely to occur in the upcoming hours. Descending wedge is generally a bullish pattern that is formed as a minor correction against the overall up-trend. Taking this into account, Silver should push north even before reaching the lower channel boundary. Technical indicators demonstrate that the rate should remain relatively stable both on daily and weekly time-frames, thus breaching the wedge to the upside. However, the 55-, 100– and 200-hour SMAs must be surpassed to realise the above scenario.
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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