Dukascopy Bank Team
Dukascopy Bank SA
EUR/TRY 1H Chart: Channel Down
Comment: EUR/TRY has recently formed a bearish channel, being unable to climb over resistance at 2.88. However, it may be too early to be short the Euro. There is an important rising support line that still has not been breached. It connects the Jan and Mar lows and implies a strong demand area around 2.79, which is also reinforced by the weekly S1. Accordingly, as long as this level remains intact, bearish bets are excessively risky. But if we do get a close beneath this demand zone, there are high chances the price will eventually slide down to 2.7450, namely where the latest recovery began. SWFX traders’ sentiment is strongly bearish: three out of four positions are currently short.
GBP/JPY 1H Chart: Channel Up
Comment: The Sterling has been outperforming the Yen lately, but for now this should be viewed only as a correction in a bearish market, since none of the important resistances have been broken yet. Consequently, while the overall bias is negative, the short-term outlook is positive, which is confirmed by the hourly and four-hour technical indicators, and the up-trend (currently at 177.22) is likely to keep guiding the currency pair further north. This recovery is expected to end either near 179 (weekly R1) or even more likely near 180, which has already proven its worth earlier this month. As for the SWFX traders, they are undecided with respect to the pair. At the moment 49% are long and 51% are short the Pound.
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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