Dukascopy Bank Team
Dukascopy Bank SA
XAU/USD 1H Chart: Triangle
Comment: Considering that gold formed a continuation pattern after a sell-off, support at 1,206 is likely to be violated. However, if this is the case, we do not see the price falling beneath 1,175 afterwards, being that the decline from Feb 11 is a retracement following a break of the long-term trend-line. Alternatively, if the green trend-line stays intact with the help of the daily pivot point and 200-day SMA and the price closes above 1,211, the first significant target before 1,263 should be 1,224/22, where the weekly PP coincides with the daily R2. Meanwhile, the sentiment in the SWFX market is negative towards the bullion: one third of positions is long and two thirds are short.
NZD/CAD 1H Chart: Channel Down
Comment: The bearish channel emerging in the hourly chart might be deceiving, being that the daily chart provides a completely different picture of what is going to happen. NZD/CAD has just arrived at the lower bound of the major bullish channel. Accordingly, while the hourly chart may suggest otherwise, it is in fact more likely that resistance at 0.91 will be broken, while support at 0.9065 will remain intact. The pair should then aim for 92 cents, where the daily R3 merges with the 200-hour SMA. At the same time, if the bears manage to push the price through 0.9065, this may well lead to a long-term sell-off down to 0.8585, namely the lowest level since last year’s November.
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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