Dukascopy Bank Team
Dukascopy Bank SA
EUR/PLN 4H Chart: Channel Up
Comment: EUR/PLN appears to be offering a good buy deal. Right now the currency pair is trading just above the lower boundary of the bullish channel, and the base case scenario therefore is a rally towards the resistance trend-line at 4.30. Moreover, most of the technical indicators on all time-frames are pointing north. However, there is a risk of the price forming a rising wedge after several failures to escape the gravity of the lower trend-line. Accordingly, a long position before EUR/PLN surpasses the recent high at 4.2050 might be premature. In case of a break-out to the downside we expect the Euro to come down to 4.13, namely to the monthly S1 level and Jun 11 low.
EUR/NZD 4H Chart: Channel Up
Comment: Considering that EUR/NZD has recently surpassed one of the major 2014 highs (Sep 29), the pair may well keep advancing further north. The positive outlook is also implied by the well-defined bullish channel and technical studies. However, at the moment the upside is limited, since the up-leg is already entering the ending phase. In the near term the Euro is expected to rise up to 1.70, where the rally should be capped by the resistance line, monthly R3, and 2013 Dec high. From there we are likely to see a decline back towards 1.64. In the meantime, the sentiment of the SWFX market is strongly bearish, being that almost three thirds of open positions are short.
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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