Dukascopy Bank Team
Dukascopy Bank SA
USD/CAD 4H Chart: Channel Up
Comment: After undergoing a bearish correction the fist half of this year USD/CAD managed to stabilise ahead of 1.06 and resume the up-trend that started back in September of 2012. As a result, during the next six months the currency pair formed a bullish channel. Accordingly, the long-term outlook for the US Dollar for now is considered to be positive.
On the other hand, in the short run the greenback is likely to lose some ground against the loonie. The rally is now facing a dense supply area at 1.1670, created by the 2009 Jul high and the up-trend, meaning there should be a decline to the lower edge of the channel before there is another up-move within the boundaries of the pattern.
NZD/CAD 4H Chart: Channel Up
Comment: Having found a strong support near 0.86, the kiwi was able to stop the sell-off (since March) and start outperforming the Canadian Dollar. And while the bullish momentum will probably remain the main force during the next few months, locally the New Zealand Dollar appears to be weak.
Even though the four-hour and daily technical indicators are largely giving ‘buy’ signals, the upside potential should be limited by the rising resistance line at 0.9080 reinforced by the monthly R1. While being capped here NZD/CAD is expected to breach the support at 0.8940 (Dec 23 low and 200-period SMA) and eventually fall down to the up-trend at 0.88.
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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