Dukascopy Bank Team
Dukascopy Bank SA
USD/TRY 1H Chart: Channel Up
Comment: A downward correction from the mid-March seems to have ended at 2.54, and the currency pair is now advancing towards the key level at 2.6450. By breaching this level USD/TRY will confirm its long-term bullish intentions. At the same time, immediate support is at 2.61, represented by the lower trend-line of the cannel. If violated, this will imply a sell-off through the weekly PP at 2.5949 and down to 2.5850. However, a deeper decline is unlikely, considering this demand area is created by the 200-hour SMA, daily S1, and some of the recent lows. Meanwhile, the SWFX traders’ sentiment is distinctly bearish: three out of four open positions are currently short.
EUR/AUD 1H Chart: Channel Up
Comment: The Euro appears to be in a good position to appreciate relative to the Australian Dollar. From below the currency pair is well-supported at 1.3917 by the 200-hour SMA and weekly PP and at 1.3900 by the two-week trend-line. The nearest resistance level is at 1.3957 (daily PP), followed by the daily R1 at 1.4018, but the bullish momentum is expected to persist at least until 1.4061, while the base case scenario is a rally towards the upper boundary of the channel at 1.41, which is reinforced by the weekly R1. As for the SWFX sentiment, the market participants are largely short the Euro: 58% of positions are to profit from currency’s underperformance.
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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