Dukascopy Bank Team
Dukascopy Bank SA
EUR/NZD 4H Chart: Channel Up
Comment: In mid-June the rate at which Euro appreciates against the Kiwi slowed down. Nevertheless, the outlook is bullish towards EUR/NZD. The first reason is that the currency pair has recently formed an upward channel. Secondly, the market respects the long-term moving average that acts as support. Thirdly, the daily and weekly technical indicators are mostly pointing upwards. During the next week we expect the price to rise up to 1.69, while a cluster of supports around 1.6454, created by the up-trend, 200-period SMA and weekly S1, must remain intact. The SWFX traders seem to have a different opinion. Right now 67% of them are holding short positions.
EUR/GBP 1H Chart: Channel Down
Comment: The Euro failed to surpass resistance at 0.7160 on Jul 27, and as a result, we expect the currency pair to visit the Jul 17 low at 0.6936 while trading between two trend-lines. EUR/GBP should soon test the upper boundary of the channel, and from there the exchange rate will be in a good position to launch an attack on 0.9956, which may in turn trigger a bullish correction before a final move towards 0.6936. If the pair closes above 0.7025, there is a high chance the weekly PP and 200-hour SMA will be enough to prevent further appreciation of the Euro. If not, the next target will already be represented by the Jul 27 high at 0.7160.
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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