Dukascopy Bank Team
Dukascopy Bank SA
NZD/USD 4H Chart: Falling Wedge
Comment: Even though NZD/USD has slow downed its decline, the pair is still falling gradually. It has not managed to surpass the 0.80 mark and that has pushed the pair into a falling wedge pattern.
As mentioned the Kiwi Dollar is struggling to breach the 0.80 level and that has pushed the pair lower. Most likely the pair will not find the necessary bullishness to climb higher, thus the target is the lower trend-line near the 0.76 mark. The 4H and daily technical indicators are also bearish as they are indicating on the pair being overbought by sending ‘sell’ signals. At the same time the SWFX traders’ are neutral towards the pair, splitting the amount of opened bullish and bearish positions.
USD/CAD 4H Chart: Channel Up
Comment: USD/CAD continues to be bullish, as it has been since this year’s July. And that has led to a formation of yet another bullish pattern—channel up.
At the moment, the pair is trading around the monthly R2 and weekly R1 and it is still on a strong up-trend. Moreover, the majority of the 4H and weekly technical studies are still bullish, meaning that the current advance could be extended. An overwhelming majority of the SWFX market participants have opened a long positions on the pair, namely 73% of them. The USD/CAD cross is likely to test the weekly R2 that is located near the pattern’s resistance at 1.1719.
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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