Dukascopy Bank Team
Dukascopy Bank SA
NZD/CAD 4H Chart: Channel Down
Comment: NZD/CAD has recently paused its recovery from 0.83, and the correction has taken the form of a channel. However, in the near term perspectives are bullish, being that the currency pair is trading at the lower edge of the pattern at the moment. Accordingly, there is a good chance the price will rebound from 0.9130 and rise up to 0.9360 during the next few weeks. There the rate should be stopped and turned around by the resistance trend-line and the 200-period SMA. If this is not the case and NZD/CAD dips through the lower boundary of the channel, our focus will shift to 0.8970, where the monthly S1 merges with the weekly S2 level.
EUR/TRY 4H Chart: Rising Wedge
Comment: Bullish momentum of EUR/TRY appears to be dying out, as the pair is forming a rising wedge. Nevertheless, in the short run there is high possibility of a rally, considering that the price is currently fluctuating next to the strong demand area, created by the rising trend-line, 200-period SMA, and the January 22 low. The current target is a solid resistance level at 3.34.
In the longer term, however, the risks are skewed to the downside. Once below 3.24, the Euro should gravitate towards 3.17 (monthly PP and Dec 31 low). The next objective will be at 3.10, where EUR/TRY is expected to come into contact with the major trend-line connecting last year’s January, July, and November lows.
-------
Who were the best experts in 2015? Have your say and vote for FXStreet's Forex Best Awards 2016! Cast your vote now!
-------
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.
Recommended Content
Editors’ Picks
EUR/USD extends sideways grind below 1.0900
EUR/USD stays in a consolidation phase below 1.0900 following the previous week's rally. In the absence of high-tier data releases, the US Dollar stays resilient against its rivals as investors scrutinize comments from central bank officials.
Gold pulls away from record highs, holds above $2,400
Gold rose sharply at the beginning of the week on escalating geopolitical tensions and touched a new all-time high of $2,450. With market mood improving modestly, XAU/USD erases a majority of its daily gains but manages to hold above $2,400.
GBP/USD holds steady near 1.2700, Fedspeak in focus
GBP/USD fluctuates in a narrow channel near 1.2700 on the first trading day of the week. The cautious market stance helps the US Dollar hold its ground, while market participants assess remarks from central bank officials ahead of this week's key events.
Ripple stays above $0.50 on Monday as firm backs research on blockchain and quantum computing
XRP price holds steady above the $0.50 key support level and edges higher on Monday, trading at 0.5130 and rising 0.70% in the day at the time of writing.
Week ahead: Nvidia results and UK CPI falling back to target
What a week for investors. The Dow Jones reached a record high and closed last week above 40,000, for the first time ever. This is a major bullish signal even though gains for global stocks were fairly modest on Friday, and European stocks closed lower.