Dukascopy Bank Team
Dukascopy Bank SA
USD/PLN 4H Chart: Rising Wedge
Comment: The bullish momentum of USD/PLN has been weakening following the Dec 16-29 rally, resulting in formation of a rising wedge pattern. Accordingly, there is an elevated risk of a reversal, and ultimately a violation of the lower trend-line can lead to a sell-off down to a major support at 3.35, though there are dense demand areas at 3.6873 (up-trend and Jan 21 low) and at 3.5980 (Jan 9 low and 200-period SMA). However, the technical indicators on the four-hour and daily charts mostly give ‘buy’ signals, suggesting the US Dollar has not yet fully exhausted its upward potential, and we can still expect some appreciation before a likely downside break-out.
EUR/SGD 1H Chart: Channel Down
Comment: The Euro has been following a downward trend since mid-December, when it failed to overcome the resistance at 1.64. However, the pair has formed a bearish channel only recently. EUR/SGD has just encountered the falling support line at 1.50, and at the moment it is undergoing a bullish correction. The immediate resistance is at 1.5186, represented by the daily R1 and weekly PP. Nonetheless, the rally is likely to extend further, potentially up to 1.5350 (200-hour SMA and falling support line), before the Euro starts negating gains. Meanwhile, the SWFX traders are undecided with respect to EUR/SGD—53% of open positions are long and 47% are 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.
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