Dukascopy Bank Team
Dukascopy Bank SA
EUR/TRY 1H Chart: Channel Up
Comment: The outlook on EUR/TRY is strongly bullish. The currency pair has just broken through a major resistance trend-line and formed an ascending channel. The losses are to be limited by the rising support at 3.10, and the target is 3.1479, where the weekly R1 merges with the upper boundary of the pattern.
Alternatively, if demand at 3.10 proves insufficient to trigger a rally, additional supports are at 3.08, created by the weekly PP and Nov 27 high, and at 3.06, implied by the 200-hour SMA. An extra ‘buy’ signal is the fact that the European currency is oversold to a considerable degree—at the moment 72% of open positions are short.
USD/DKK 4H Chart: Rising Wedge
Comment: The downside risks in USD/DKK are rapidly increasing. This is implied by the pair trading between two ascending but converging trend-lines, namely within the rising wedge, which usually portends a sell-off. While we may expect a test of 7.10 in the near future, further advancement is highly unlikely because of the Apr high and weekly R2. We will then expect a break-out through the lower edge of the pattern. In this case the first main target will be the Nov 25 low at 6.98, followed by a substantially stronger demand area at 6.93/6.92. Another argument against the rally is a high proportion of long positions in the market. The bulls take up 74% of all the traders.
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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