Dukascopy Bank Team
Dukascopy Bank SA
USD/NOK 1H Chart: Channel Up
Comment: USD/NOK is in a good position to rally. Since the last week of December the currency pair has formed a high-quality channel, and at the moment it is trading right at the lower boundary of the pattern. Accordingly, the price is likely to surpass the January 5 high and then probe the resistance trend-line at 9.07. The longer-term bullish outlook is also confirmed by the sentiment (72% of positions are short), although the technical indicators are mixed. Meanwhile, a close beneath 8.91 will imply a sell-off down to 8.80/8.79, where the weekly pivot point and the 200-hour SMA will attempt to nullify the downward momentum and trigger a recovery.
AUD/NZD 1H Chart: Channel Up
Comment: There is a bullish pattern emerging in the hourly chart of AUD/NZD. However, considering that the pair has just confirmed the upper edge of the channel, we expect a sell-off down to 1.0650 today. There the decline should give way for a strong rally, being that this demand level is strengthened by the rising support line, weekly pivot point, and the 200-hour SMA. If 1.0650 proves insufficient to halt the sell-off, the Aussie will probably test the December low at 1.0570. Alternatively, in case the rate suddenly soars through 1.0740, there might not be resistances capable of stopping AUD/NZD until the highest point seen in December, namely 1.1050.
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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