Dukascopy Bank Team
Dukascopy Bank SA
EUR/TRY 1H Chart: Channel Down
Comment: While there is a high possibility of a rally in the short run, the general outlook on EUR/TRY is bearish until the April low at 2.78 is reached, since supply at 3.09 did not allow the price to advance further in the first half of May. Over the next few days the Euro is likely to appreciate to 2.90, but there the currency is supposed to be stopped by the resistance area created by the weekly S1 together with the May 20 and the upper boundary of the pattern. From there the currency pair will be expected to target the lower trend-line. Meanwhile, a vast majority of the SWFX market participants is short the single currency, namely 73% of all the traders.
EUR/SEK 1H Chart: Channel Down
Comment: Given the current market conditions, the risks are heavily skewed to the downside. The latest gains should be capped by 9.28, where the daily pivot point merges with the falling trend-line. The nearest support is at 9.26, and this level must be broken in order for the currency pair to confirm its intentions to descend deeper, down to 9.2450 (May 8 low). At the same time, if 9.28 fails to trigger a sell-off, the bears will have a good opportunity to regain control at 9.3250 (May 20 high and 200-hour SMA). As for the sentiment in the SWFX market, right now most of the traders prefer to be short the Euro—70% 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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