Dukascopy Bank Team
Dukascopy Bank SA
EUR/PLN 4H Chart: Channel Up
Comment: Being that EUR/PLN is trading next to the upper edge of the channel at the moment, there is a substantial risk of a sell-off. The bearish correction is likely to start soon after a test of 4.2060, and then the dip is expected to extend down to 4.12. However, the Euro is a risky sell, since the latest down-leg did not reach the lower boundary of the pattern. In case of a break-out to the upside, the focus will shift to the Feb at 4.2258. Meanwhile, in the long run we may expect a rally towards 4.4030, namely to the 2014 high. In the meantime, the technical indicators are mixed, while the SWFX sentiment is strongly bearish, with as many as 72% of open positions being short.
USD/SGD 4H Chart: Rising Wedge
Comment: USD/SGD seems to have finally ended the downward correction at the 50% retracement of the up-move that developed between Jul 2014 and Mar 2015. However, the emergence of the rising wedge indicates that the bullish momentum is probably running out of steam. If the rising trend-line at 1.3480 is broken, the outlook will be strongly negative, but there will be a chance for a rebound from 1.34, where the monthly PP merges with the Jun 3 low, and 200-period SMA. Additional supports are at 1.3251 and at 1.3151, represented by the monthly S1 and Apr low, respectively. As for the sentiment, the SWFX traders remain optimistic regarding the Dollar: 72% of positions are long.
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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