Dukascopy Bank Team
Dukascopy Bank SA
EUR/GBP 1H Chart: Channel Up
Comment: EUR/GBP has recently broken out of the bearish channel to the upside and subsequently formed a new pattern—an ascending channel. The outlook on the currency pair for the next several days is therefore positive, and we expect the price to rebound from the lower rising trend-line and jump over the latest high. However, there are also plenty of arguments against appreciation of the Euro. For one, the single currency is already overbought, being that 72% of currently open positions are long. At the same time, the bias among the technical indicators is to the downside. If the rate closes under 0.7910, the weekly R1 at 0.7876 will become the first target, followed by the May 2 low and 200-hour SMA near 0.7820.
CAD/JPY 1H Chart: Channel Down
Comment: The pair’s prospects are ambiguous. On the one side, CAD/JPY is currently trading in a bearish channel with a slight majority of technical studies implying weaker Canadian Dollar. On the other hand, there is a four-month support trend-line that may not let the price drop under 83 yen. If it does, however, we should soon see a test of the weekly S2 near 82 yen and potentially of the April low standing at 81.70. Alternatively, in case the down-trend at 83.75 fails to contain demand, the price will be in a good position to launch an attack on 84.30, namely the May 4 high. As for the SWFX sentiment, the distribution of positions is a trifle titled to the bearish side—42% are long and 58% 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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