Dukascopy Bank Team
Dukascopy Bank SA
USD/ZAR 1H Chart: Channel Down
Comment: At first it seemed as if USD/ZAR was forming a falling wedge. However, the bullish potential of the pattern was not realised, as the pair plunged through the lower boundary of the figure, giving a bearish channel a chance. Since the price has recently bounced off of the lower boundary of the emerging channel, USD/ZAR will probably rise in the near term, but the expected rally is likely to be shallow due a formidable supply area between 16.10 and 16.20, created by two trend-lines and the weekly pivot point. An additional significant resistance level is at 16.35, represented by the long-term moving average. Meanwhile, the immediate support is at 15.87, followed by the falling trend-line at 15.71.
EUR/NOK 1H Chart: Channel Down
Comment: Although initially EUR/NOK appeared to form a falling wedge, the break-out to the upside was not confirmed. Nevertheless, even though the daily indicators are mostly bearish, there is a possibility of a rebound, being that 9.38 is a major demand level—here lies the trend-line that stretches back to May of 2015. At the same time, considering that in the weekly chart the Euro has just tested the upper boundary of the channel (Jan high), this trend-line should eventually be broken, thus making a bet on a rally from last month’s minimum a high-risk bet. Above 9.50 the target will be the January high at 9.75, while below 9.38 the pair will probably sink down to 9.09.
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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