AUD/SGD 4H Chart: Channel Up
Comment: The Australian Dollar is poised for a rally against its Singapore counterpart. AUD/SGD has just confirmed the lower boundary of the channel, which implies a recovery towards the upper part of the pattern. The bullish outlook is also supported by the daily and weekly technical indicators. Accordingly, we expect a strong rebound from 1.0250/00 up to 1.07-1.08. A counter-argument against Aussie’s appreciation would be a high percentage of bulls in the market. As of right now, as many as 71% of traders are holding long positions. If the price closes under 1.02, the new target will be the April low at 1.0130, and we should not rule out a deeper decline down to the March low at 0.9980.
USD/PLN 1H Chart: Descending Triangle
Comment: USD/PLN is currently consolidating, after the pair bounced off of 3.71 at the very beginning of April. Before the US Dollar returns to appreciation, however, there is a chance the rate will fall some five-six figures. The currency pair is forming a descending triangle, a pattern that implies growing supply. We should therefore be ready for a breach of support between 3.86 and 3.85. The first major demand area this sell-off will encounter is at 3.8270/20, while the key level is at 3.80, implied by the four-week up-trend. Considering the sentiment in the SWFX market, the bears might not remain in control for long, since the Greenback is already overbought—73% of positions are already 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.
Recommended Content
Editors’ Picks
EUR/USD stays in positive territory near 1.0650
EUR/USD clings to modest daily gains at around 1.0650 in the American session on Wednesday. The US Dollar struggles to gather strength amid a modest improvement seen in risk mood and helps the pair hold its ground.
GBP/USD stabilizes at around 1.2450 after UK inflation data
GBP/USD consolidates its daily gains near 1.2450 after recovering toward 1.2500 with the immediate reaction to stronger-than-expected inflation data from the UK. The renewed US Dollar weakness also helps the pair hold its ground.
Gold eases despite risk-off mood
Gold trades in a relatively tight range near $2,390 in the second half of the day on Wednesday. In the absence of high-tier data releases, investors keep a close eye on headlines surrounding the Iran-Israel conflict.
XRP tests $0.50 resistance after Ripple CLO clarifies that no pretrial conference took place with SEC
XRP is stuck below $0.50 resistance after failing to close above this level since Monday. Ripple CLO Stuart Alderoty said late Tuesday there was no pretrial conference since the SEC dropped charges against executives.
World economy: To cut or not to cut (simultaneously)?
US inflation March figure, again higher than expected, put an end to the scenario of a simultaneous first rate cut by the Fed, the ECB, and the BoE in June.