Dukascopy Bank Team
Dukascopy Bank SA
NZD/USD 4H Chart: Channel Down
Comment: NZD/USD’s outlook is bearish. The pair is currently trading near the 19-month resistance trend-line, which implies that any attempts of appreciation are to be prevented by 0.6690. At the same time, this suggests that the nearby support lines (at 0.6590 and at 0.64) should eventually be broken to the downside, even if they trigger some buying in the short term. Meanwhile, if the price somehow manages to close above 67 cents, the first target will be the monthly R1 and Feb 5 high at 0.6770/50, followed by a combination of the last year’s Oct and Dec peaks at 0.6900/0.6880. As for the sentiment, the SWFX traders are divided regarding Kiwi’s prospects: 55% are long and 45% are short.
AUD/SGD 4H Chart: Channel Down
Comment: AUD/SGD is set for a decline both in the short and long terms. The currency pair has just met the upper bound of the descending channel and is thus expected to head towards the lower bound next, namely the 0.9650/00 area. The rallies are to be limited by 1.0100/1.0050 (down-trend, monthly PP, and Feb 17 high), but if the bulls keep pushing the price higher, 1.04 will become the new objective. There we have the highest levels since August and December of 2015. A good ‘sell’ opportunity is also implied by the positioning of market participants, as the Aussie is currently overbought to a significant extend—as many as 74% of open positions are long.
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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