Dukascopy Bank Team
Dukascopy Bank SA
GBP/NZD 1H Chart: Rising Wedge
Comment: The overall outlook on GBP/NZD is bullish, being that the currency pair has recently broken through the upper boundary of the falling wedge that had been previously formed in the daily chart. Considering shorter-term developments, namely the price approaching the apex of the rising wedge in the hourly chart, there is likely to be a sell-off from 2.1244/28 (up-trend, daily R1 and Mar 29 high) before the Sterling resumes its long-run recovery. In the end, the rate may slide down to 2.08/2.07 before the bulls are able to regain control of it. Nevertheless, there is still a decent chance that the dip will be limited by a rising support line at 2.0950 that was established last week.
EUR/JPY 4H Chart: Rising Wedge
Comment: Euro’s rally from 121.70 is about to come to an end. The main reason to be bearish on the pair is the major down-trend line near 128 yen. Resistance there is also strengthened by the weekly R2 and March high. At the same time a little closer to the spot price, there is the monthly pivot point at 126.14, which is fully capable of preventing further appreciation as well. As a result, we expect EUR/JPY to violate the lower boundary of the emerging pattern in the nearest future. The first target will then be yesterday’s low at 124.70, followed by the monthly S1 and weekly PP at 124.25/06. A yet another ‘sell’ signal is provided by positioning of traders in the SWFX market: 73% are already bulls and only 27% are bears.
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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