Dukascopy Bank Team
Dukascopy Bank SA
USD/CAD 1H Chart: Ascending Triangle
Comment: USD/CAD was not able to reach the 1.10 mark, as it entered a consolidation phase slightly below the level. According to the technical studies, a break-out to the upside is more likely than a decline. If this happens then the pair should breach the major level at 1.10; however, we can see that the pair’s bulls failed to do that yesterday (on August 25th). We expect the pair to approach the pattern’s support around 1.0960 before forming an attack towards the upper trend-line at 1.0984. Our traders are neutral on the pair, as 51.18% of them expect the Greenback to outperform its Canadian counterpart.
EUR/NZD 4H Chart: Double Top
Comment: EUR/NZD found a strong resistance around monthly R1 at 1.5896, while at the same time the pair is supported by the major level at 1.57. The currency pair has topped twice; however, it seems that the pair is peaking once again, indicating on a possible triple top pattern formation. Moreover, the pair failed to break the neck-line at 1.5718 to the downside, thus we expect the pair to reach the weekly and monthly R1 before approaching the neck-line again. The weekly technical indicators are pointing to the south, suggesting that a bearish break-out is likely to occur. The SWFX market participants are strongly bearish, as 73.23% of them have opened long positions on the pair.
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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