Dukascopy Bank Team
Dukascopy Bank SA
AUD/NZD 1H Chart: Channel Up
Comment: At a first glance AUD/NZD might offer a good opportunity to go long, but in fact this is not the case. Although the eight-month up-trend has been broken to the upside, further development of the rally is highly unlikely. The reason is the five-year down-trend resistance line that stands just above the January high, namely at 1.10. Accordingly, while the one-two day perspective is bullish, longer-term perspective is bearish. At the same time, the Aussie is overbought to a significant extent, and this is an additional argument against the Aussie’s appreciation relative to the Kiwi—74% of open positions in the SWFX market are long.
GBP/JPY 1H Chart: Channel Up
Comment: GBP/JPY is in a good position to advance further north. The pair has recently broken out of the falling wedge and pierced through the long-term SMA. This implies that the British Pound is going to become even more expensive compared to the Asian currency. While during the next several days the price is expected to undergo a downward correction to 158.15/157.87 (weekly PP, 200-hour SMA, and up-trend), next week the Sterling could already launch an attack on the February 16 high at the level of 166 yen. Below 158 yen the rate will likely keep sliding down until it hits demand at 154.75. As for the sentiment, traders are undecided—47% of positions are long and 53% are short.
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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