Dukascopy Bank Team
Dukascopy Bank SA
XAU/USD 1H Chart: Channel Up
Comment: During the first half of January the precious metal has appreciated by nearly 8%. Considering the price has formed a bullish channel during this time, there is a high likelihood gold is going to keep rising in value. This scenario is also reinforced by the technical indicators on three most relevant time-frames. However, in the short run we expect a correction, being that XAU/USD has just encountered the upper trend-line of the pattern. The dip should be limited either by the weekly PP at 1,260 or by the rising support line at 1,250. As for the sentiment, the bulls have a slight advantage over the bears—16 percentage points.
EUR/NZD 1H Chart: Channel Down
Comment: Following a period of relative stability observed during the last three months of 2014, the Euro started quickly losing ground against the kiwi. As a result, EUR/NZD is now forming a downward channel, and yesterday we also pointed out a possibility of the pair forming a broadening falling wedge. At the moment the rate is moving north, but the rally is highly unlikely to extend by more than 100 pips, being that the upside is limited by a number of tough resistances, including the 200-hour SMA and a multi-week down-trend (connects Jan 5 and Jan 14 highs). However, an overwhelming majority of the SWFX market participants are long the Euro, namely 75% of them.
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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