Dukascopy Bank Team
Dukascopy Bank SA
CAD/JPY 1H Chart: Channel Up
Comment: CAD/JPY is likely to preserve the current upward momentum, as the rally from 93 is not seen as correctional any more. The currency pair advanced well past the 61.8% Fibonacci retracement of Oct 9-16 sell-off and it is thus expected to keep moving further north.
In the very near term we should be wary of a potential pull-back. The pair has just hit the upper trend-line of the bullish channel and should therefore retreat some 50-100 pips before developing yet another bullish wave. Meanwhile, the sentiment of the market is distinctly bearish—as many as 65% of open positions are short, and a majority of the technical indicators is giving a ‘sell’ signal.
USD/SGD 4H Chart: Descending Triangle
Comment: Although USD/SGD took a major hit after approaching the resistance at 1.2830 (Jan high), the support at 1.2680 was able to prevent a deeper decline. As a result, the pair formed a descending triangle and subsequently has broken it to the upside.
Right now we expect USD/SGD to come back to the down-trend at 1.2740 and then resume the rally. However, there are many tough resistances overhead. The first supply is represented by the Mar high and weekly R1 just below 1.28, followed by the mentioned 1.2830. But the main obstacle for the US Dollar in the coming days is likely to be the 2013 high at 1.2860.
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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