Dukascopy Bank Team
Dukascopy Bank SA
EUR/JPY 4H Chart: Channel Down
Comment: The Euro is set to decline. Not only did the pair form a well-defined bearish channel, but it has already managed to break some of the major supports, such as the nine-month falling line and the 2015 low. The target is now the 2013 February minimum at 118.80, while the upside is limited by the upper boundary of the channel at 124.20. Additional significant supply area is circa 125 yen, represented by the February 25 high and the recently broken line. The negative bias is reinforced by the technical indicators, which are giving ‘sell’ signals in every relevant timeframe. On the other hand, the Euro is already oversold in the SWFX market—72% of open positions are short.
EUR/NZD 4H Chart: Channel Down
Comment: The signals on EUR/NZD are mixed. From one side, the outlook should be bearish, considering that the pair has formed a descending channel and a majority of the technical studies are pointing south. At the same time, the bears are facing a major challenge, namely the 11-month trend-line just above 1.63 dollars, and it does not seem to be willing to give in to the sellers. In any case, the short-term outlook is bullish. The rate is expected to leave the demand area around the level of 1.63 and head towards the upper edge of the emerging pattern at 1.6940. If the price closes above this resistance, the rally will likely extend by 300 pips, namely up to the January and February highs at 1.7280/30.
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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