Dukascopy Bank Team
Dukascopy Bank SA
EUR/CAD 1H Chart: Triangle
Comment: The Euro has been recently consolidating following a precipitous decline from 1.4650. As a result, EUR/CAD formed a symmetrical triangle, and the pair has already reached the apex of the pattern, meaning there should soon be a break-out. Considering the context of the market (explicitly bearish since mid-December) and the ‘sell’ signals provided by the technical indicators, the price is expected to close beneath the lower trend-line (1.4080) and then negate the latest gains. However, there are a few notable nearby supports that are worth keeping in mind, such as the 200-hour SMA at 1.4050 and a round level of 1.40.
USD/TRY 1H Chart: Channel Down
Comment: While during the first part of December the US Dollar tended to outperform the Turkish Lira, since the very beginning of 2015 the opposite was true, and USD/TRY managed to form a high-quality bearish channel. Accordingly, we expect the sell-off to persist, at least until the lower boundary of the channel is reached. The currency pair should push through the supports at 2.2740 and 2.2680 represented by the Jan 13 low and weekly S1, respectively, and eventually arrive at 2.2570, where an upward correction may well be initiated. Meanwhile, the sentiment is neutral, with 46% of open positions being long and 54% being short.
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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