Dukascopy Bank Team
Dukascopy Bank SA
NZD/CAD 1H Chart: Broadening Falling Wedge
Comment: The pair has formed a broadening falling wedge pattern, when on 22nd of August the Kiwi failed to consolidate above the 0.92 level. If at the end of August and at the beginning of September the pair traded mostly around the lower boundary of the pattern then now we are seeing more fluctuation. Moreover, the 4H and daily technical studies are bearish, thus suggesting that the current down-trend is likely to continue. However, there is no clarity among the traders as 51.72% of them expect a bullish break-out, while 48.28% are holding short positions. Now, if the pair remains supported by monthly S2 at 0.8903 then an advance towards weekly S1 is expected.
NZD/USD 4H Chart: Broadening Falling Wedge
Comment: The pair failed to strengthen above the 0.85 mark on 14th of August and since then it has lost around 400 pips, meanwhile forming a broadening falling wedge pattern. At the moment, NZD/USD is trading around the lower trend-line, which is represented by monthly S1 at 0.8083. Additionally, that is indicating on a higher probability of a bearish break-out, as the pair has been challenging the trend-line. Moreover, all of the technical indicators are pointing to the downside; therefore, strengthening the bearish scenario. Nevertheless, 58.48% of the SWFX traders think that the pair is oversold. If the 0.81 level holds then a short-term rebound is possible.
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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