Dukascopy Bank Team
Dukascopy Bank SA
NZD/USD 4H Chart: Channel Up
Comment: The New Zealand Dollar is expected to keep appreciating against its US counterpart. The near-term losses are to be limited by the rising support line at 0.6750, which is reinforced by the weekly pivot point. If the price manages to close above December 22 high, the next target should be 0.69, where the October maximum coincides with the weekly R2 level. Downward correction will then be expected above 0.6950, where strong supply is implied by the weekly R3, monthly R2 and the upper boundary of the channel. Meanwhile, below 0.6750 the pair will gravitate towards 0.67. Additional demand area is created by the weekly S2 and monthly PP at 0.66.
GBP/AUD 1H Chart: Channel Down
Comment: Although the rate may rebound today from the Tuesday’s low at 2.0470, our bias with respect to the British Pound will remain negative. The immediate resistance is at 2.0574/70, represented by the daily PP and weekly S1. Even if this supply zone is broken, the falling trend-line at 2.07 will be expected to halt further recovery and send the pair lower.
Alternatively, if GBP/AUD dips under 2.0470, the decline should be limited, being that at 2.0393/80 in addition to the daily and weekly S2 levels the currency pair will also encounter the lower edge of the channel, within which it has been trading since the beginning of the previous week.
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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