Dukascopy Bank Team
Dukascopy Bank SA
EUR/USD 4H Chart: Triangle
Comment: As evident from the chart, EUR/USD is currently consolidating in a bearish market. This fact significantly increases the chance of a break-out to the downside, which should occur in the nearest future, considering the proximity of the pair to the apex of the triangle. If the support up-trend is indeed broken, the Feb 9 low at 1.1269 is to be the first target, followed by support at 1.11, which is mainly responsible for the emergence of the pattern. However, neither the four-hour nor the daily indicators are pointing south, only some of the weekly studies are in favour of the negative outlook. At the same time, the sentiment is neutral: 48% of positions are long and 52% are short.
EUR/NOK 4H Chart: Channel Down
Comment: Although at first EUR/NOK seemed to be trading within the boundaries of a falling wedge and even broke out of the pattern to the upside on Feb 11, the recovery was not sustained. As a result, the currency pair now appears to be forming a bearish channel. The immediate support is at 8.54, represented by the Feb 11 low and weekly S1, but the sell-off is likely to extend lower, down to 8.50, where the lower trend-line of the channel is reinforced by the monthly S1 level. There we can expect the bulls to gain control of the market, but only temporarily, until the exchange rate reaches the upper trend-line of the channel, which at the moment can be found at 8.70.
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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