Dukascopy Bank Team
Dukascopy Bank SA
EUR/CAD 1H Chart: Channel Down
Comment: Although the quality of the pattern is low, the bias towards EUR/CAD is still bearish. The pair is currently trading next to the upper boundary of the potential channel, which is also reinforced by the daily and weekly pivot points. Demand circa 1.5150, however, is going to be a major challenge for the bears, but beneath it the sell-off will be expected to extend down to 1.4950, namely the January low and the lower trend-line of the emerging channel. At the same time, a close above 1.5360/50 will not imply an immediate change in the outlook, being that the 200-hour SMA and daily R2 at 1.5480 are likely to prevent further recovery of the European currency.
AUD/NZD 1H Chart: Channel Down
Comment: The risks are heavily skewed to the downside. First, AUD/NZD has been trading within the bearish channel for the last four days. Secondly, the pair is right at the upper edge of the pattern. Accordingly, the Aussie should leave the 1.0790/80 supply area and head south. However, there is going to be a significant support zone at 1.0733/24, represented by the Feb 19 low and 200-hour SMA. Below it the price should gravitate towards the lower bound of the channel and the weekly S1 around 1.07. Alternatively, in case the rate jumps out of the channel to the upside, the focus will shift to a major resistance area at 1.0874/66, where the weekly R1 is joined by the daily R3 and Feb 16 high.
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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