Dukascopy Bank Team
Dukascopy Bank SA
CAD/JPY 4H Chart: Channel Up
Comment: The emerging bullish channel is a part of a consolidation phase following a massive June-August sell-off. However, so far we see no signs of a break-out to the downside, meaning we may safely assume that CAD/JPY will respect the rising trend-line, currently at the level of 90 yen, and extend recovery from 88.90. Intermediary supports are at 91.70 (monthly PP and 200-period SMA) and at 90.60 (Oct 28 low). In the meantime, the upside is limited by the October high and the upper trend-line at 93.26 and 93.70, respectively. A close above these resistances will imply that the price will eventually reach 96 yen, namely the August high.
AUD/CAD 4H Chart: Channel Up
Comment: Despite AUD/CAD currently struggling to advance through the weekly PP and 200-period SMA, the outlook on the currency pair is bullish. The Aussie is expected to resume the rally from 0.93 and re-test 0.9585, a tough resistance level that withstood both October attacks. However, we might have to wait before the pair regains bullish momentum, considering that at the moment the situation is unfavourable for a rally, being that the daily and weekly technical indicators are bearish. Meanwhile, a dip through 0.93 will likely lead to a slide to the November 1 low at 0.9250. Additional downward pressure might expose the September low at 0.9150.
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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