Dukascopy Bank Team
Dukascopy Bank SA
XAU/USD 1H Chart: Channel Down
Comment: As it has just turned out, the upper boundary of the descending channel failed to contain the latest recovery. The price is now probing the long-term moving average, which appears to be one of the last reasons to remain bearish on gold. If resistance at 1,069 is broken, the exchange rate will likely rise through the weekly R1 towards the December 24 high at 1,077.
At the same time, in case the bears manage to push the bullion back below 1,066 (weekly and monthly PP), the negative outlook will be restored, and after a test of the December 31 low the sell-off will be expected to extend to 1,054, where the lower trend-line merges with the weekly S1 level.
EUR/SEK 4H Chart: Channel Down
Comment: Our bias with respect to the Euro is negative. The currency has been in a down-trend since last year’s August, and for the time being there seem to be no reasons to change the outlook. In addition, EUR/SEK has formed a high-quality bearish channel, and a majority of the technical indicators on all three relevant time-frames is pointing south. Accordingly, over the next few weeks the price should descend from 9.19 to the 2015 maximum at 9.06. In the meantime, a close above 9.19 will not imply a prolonged rally because of a number of strong resistances lying overhead, such as the December 30 high at 9.2070 and a combination of the weekly R1 and monthly PP at 9.2277/52.
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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