Dukascopy Bank Team
Dukascopy Bank SA
EUR/CAD 1H Chart: Channel Down
Comment: As a result of Euro’s failure to overcome resistance at 1.4330, the bears took control of EUR/CAD and pushed the price down to 1.3722. From here we can see a rebound, being that this is the current level of the lower boundary of the bearish channel the pair has been trading within since late February. However, the potential rally is unlikely to extend the rally far beyond 1.39, being that the overall bias is negative, and the risks are skewed to the downside. In the meantime, the SWFX market appears to be undecided, being that 55% of open positions are long and 45% are short, and the technical indicators are largely mixed, with only the hourly ones distinctly pointing south.
AUD/SGD 4H Chart: Rising Wedge
Comment: Considering that since the beginning of February AUD/SGD has been forming a rising wedge, there is an increased probability of a significant sell-off. At the moment the key support is at 1.0637, where the 200-period SMA merges with the one-month up-trend and the weekly PP. If this level is breached, the Aussie may fall as low as the Feb minimum at 1.0327, but the currency will also have a good chance to stabilise at the Feb 19 and 11 lows at 1.0535 and 1.0408, respectively. However, the technical signal that longs positions are safe for now, and the upward momentum has not yet been fully exhausted. As for the sentiment, 71% of traders are short the Australian Dollar against its Singapore peer.
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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