USD/ZAR 1H Chart: Channel Up

USDZAR

Comment: After a prolonged two-month decline the U.S. Dollar commenced a recovery on Apr 10 that still persists. Because of this USD/ZAR was able to form a bullish channel with the resistance at 10.6516 and the support at 10.4952. Right now the currency pair is testing the lower boundary of the pattern at the latter level, therefore the near-term bias towards the price is bullish.

However, if, contrary to this scenario, the selling pressures gains the upper hand, we will be looking at the nearby weekly pivot points as the most likely targets. Meanwhile, the sentiment among the SWFX market participants is moderately bearish—60% of open positions are short.


USD/TRY 1H Chart: Channel Up

USDTRY

Comment: The present situation in USD/TRY is reminiscent of the one currently being observed in USD/ZAR, where the currency pair is also forming an upward-sloping channel starting from Apr 10.

Considering that USD/TRY is currently trading near the lower rising trend-line, the U.S. Dollar is expected to appreciate versus the Turkish Lira in the short run. However, the technical indicators at the moment are mixed and do not support such a course of events. At the same time, the distribution between the bulls and bears is in favour of the latter (58%), meaning a significant part of the SWFX traders believe the greenback is going to cede ground.

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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