Dukascopy Bank Team
Dukascopy Bank SA
NZD/USD 4H Chart: Channel Downa
Comment: NZD/USD is apparently forming a downward-sloping channel, meaning the general outlook is bearish. If the New Zealand Dollar starts to recover, which may well be the case since the Kiwi is now facing support at 0.7230 (weekly S1 and monthly S2), the rally should be stopped by the upper boundary of the pattern at 0.7350. The target is the lower trend-line at 0.7065.
However, with every new red bar short bets are becoming more and more risky, being that the price is closing in on the major demand areas. The closest is around 0.7180, represented by the March and February lows. This zone is followed by the 2011 low at 0.7119.
GBP/USD 4H Chart: Channel Down
Comment: As mentioned in the previous report, GBP/USD has recently broken out of the bullish channel. However, the upward momentum may still be alive, being that the 200-period SMA remains intact, and the technical indicators are mixed. Regardless, the short-term bias is to the upside. The exchange rate is expected to rebound from 1.53, but the surge is unlikely to extend beyond 1.5553, where the weekly pivot point merges with the falling resistance line. Alternatively, if the bears fail to keep the pair within the boundaries of the pattern, the price will be in a good position to re-test the May 21 high at 1.57, where it will also meet the monthly R1 and the recently broken trend-line.
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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