Dukascopy Bank Team
Dukascopy Bank SA
AUD/SGD 1H Chart: Channel Up
Comment: AUD/SGD is in a good spot for a rally. The currency pair has formed a bullish channel, and right now it is testing the lower boundary of the pattern, which is reinforced by the weekly pivot point and 200-hour SMA. Accordingly, we do not expect the daily pivots to be able to contain the rally—the price should rise up to 1.0125/40 (up-trend, weekly R1 and October 26 high) before we see a bearish correction. However, advancement could be limited by a lack of demand, as bulls already take up 69% of the market. At the same time, a dip beneath 1.0020, implied by the daily technical indicators, should result in a 100-pip decline to the October low at 0.9920.
AUD/JPY 4H Chart: Channel Down
Comment: While the Aussie is bullish relatively to its Singapore counterpart, we hold a bearish bias towards AUD/JPY. The recently established channel implies that a sell-off from 87.60 will extend through the nearest supports, including the monthly PP and 200-period SMA at 86.00. Bulls are expected to temporarily gain control of the market somewhere near 85 yen, but the ensuing recovery is to be capped by the upper trend-line of the channel. In case there is a break-out to the upside, the initial target will be the October 23 high at 88.10, followed by the October high and monthly R1 at 88.70. Meanwhile, the market is overcrowded with bulls—their share is 73%.
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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