Dukascopy Bank Team
Dukascopy Bank SA
EUR/SGD 4H Chart: Channel Down
Comment: EUR/SGD entered a down-trend after a failure to surpass the resistance at 1.77 in March. The pattern is already 500 bars long and is likely to remain intact in the future. Since the mid-June the currency pair has been forming a rising wedge within the bearish channel and has already reached its apex, meaning there should soon be a reversal of the latest bullish correction. Moreover, the Euro is trading just below a tough resistance level at 1.7082, represented by the Jun 30 high and down-trend resistance, and most of the technical indicators on the four-hour and weekly charts are presently pointing south, meaning that 1.6744 is likely to be the next target of EUR/SGD.
EUR/CAD 4H Chart: Falling Wedge
Comment: The bears have been in control of the market since March, when the Euro did not have enough strength to overcome 1.56. However, there are signs their reign may soon come to an end, as the currency pair has been recently forming a falling wedge pattern that usually portends a change in the trend.
If the falling resistance line at 1.4566 is broken either in the coming days of after a dip to 1.4451, there will be a good chance of a subsequent up-move towards the Jun 6 high at 1.4950. On the other hand, the technical indicators are still mostly pointing downwards on all three relevant time-frame, suggesting the bearish pressure is unlikely to subside in the nearest future.
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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