Dukascopy Bank Team
Dukascopy Bank SA
USD/ZAR 4H Chart: Ascending Triangle
Comment: The outlook on USD/ZAR is strongly bullish, as nearly all the studies are suggesting a rally. First of all, the overall trend is upward. Secondly, even though the pair has recently struggled with resistance at 16.93, the ascending triangle implies that demand is building up. Thirdly, the indicators in all three relevant time-frames are pointing north. Finally, the US Dollar is far from being overbought—71% of open positions are short. Accordingly, we expect the rate to close above the monthly R2 in the nearest future, which in turn will pave the way towards the monthly R3 at 18.08. Even if USD/ZAR dips under 16.71, it will likely rebound from the up-trend at 16.30 and preserve the bullish momentum.
CAD/CHF 4H Chart: Channel Down
Comment: While there is a high chance of a rally in the nearest future, the bias towards CAD/CHF is negative. The pair has established a well-defined channel, and right now it is approaching the lower boundary of the pattern, meaning there is likely to be a bullish reaction. However, the rally is to be stopped by 0.6980/70, where the monthly S1 merges with the Jan 19 high and the resistance trend-line. There we expect the Loonie to initiate a new leg down, which will probably extend towards 0.67 (weekly and monthly S2). At the same time, if supply at 0.6980/70 proves to be insufficient to halt Loonie’s appreciation, the focus will shift to the long-term moving average, which is currently at 0.7150.
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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