Dukascopy Bank Team
Dukascopy Bank SA
EUR/TRY 4H Chart: Rising Wedge
Comment: As EUR/TRY formed a rising wedge, a reversal pattern, the risks are heavily skewed to the downside. After the currency pair approaches a dense supply area at 2.87/86, it is expected to violate the support trend-line, which will confirm the bearish intentions of the Euro. The initial destination in this case will be a cluster of supports at 2.75/74, where the monthly PP merges with the 200-period SMA and Jan 22 high. If this zone does not withstand the selling pressure, the Jan 23 low at 2.6060 may well become the next objective. At the same time, an overwhelming majority (73%) of the SWFX market participants are currently holding short positions.
EUR/NOK 4H Chart: Falling Wedge
Comment: A prolonged bearish correction that followed the up-move between September and December seems to have finally come to an end. EUR/NOK has just closed above the resistance trend-line of the falling wedge pattern. If the pair manages to stay above 8.65, the Euro will likely extend the most recent rally to the supply area around 8.80, where the Jan 29 high coincides with the monthly pivot point and the longterm moving average. Should the bulls keep pushing the price even further north, the resistance at 9.23 will be the next potential target. However, the SWFX sentiment is strongly bearish, as 67% of all open positions are presently 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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