Dukascopy Bank Team
Dukascopy Bank SA
AUD/CAD 1H Chart: Rising Wedge
Comment: There is an increasing chance of the recent recovery from 9.40 coming to an end, as implied by the emergence of a rising wedge. However, considering the bullish indicators on the four-hour chart, AUD/CAD still has some upward potential. The rally is thus likely to extend a bit further, to the Nov 21 high at 0.9850, before making a U-turn and breaking out of the pattern to the downside. The first significant support will then be at 0.9650, where the weekly PP merges with the Dec 16 high. Additional demand area is at 0.9580 created by the weekly S1 and 200-hour SMA. Meanwhile, the SWFX sentiment is positive towards the Aussie—61% of open positions are long.
EUR/NOK 1H Chart: Channel Up
Comment: Having found a solid support around 8.97 on Jan 8, EUR/NOK is currently negating some of the recent losses. Given that the pair has formed a bullish channel, the recovery is likely to persist. The Euro has just gained a foothold above 9.1433, meaning the next target is the Jan 12 high at 9.1887, though the price is expected to rise beyond this resistance, namely towards the upper trend-line at 9.2191. Alternatively, should EUR/NOK slide beneath 9.14, there will be the weekly PP and 200-hour SMA waiting for the pair at 9.12 and 9.10, respectively. As for the sentiment, as many as 68% of the SWFX market participants are holding short positions.
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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