Dukascopy Bank Team
Dukascopy Bank SA
AUD/SGD 4H Chart: Descending Triangle
Comment: Judging by the latest developments, namely formation of the descending triangle, supply is building up in AUD/SGD. Accordingly, we expect a breach of 1.03 with an ensuing sell-off through the April low (1.0252) into the region of 1.0160.
On the other hand, violation of the major resistance area at 1.0410, created by the falling trend-line, monthly PP, and 200-period SMA, will invalidate the negative outlook. The target will then be the Jun 15 high at 1.0481, followed by the Jun high and monthly R3 at 1.0540. At the same time, there are a little more bears in the SWFX market than there are bulls. While the former constitute 55% of all traders, the latter take up 45% of the market.
GBP/NZD 4H Chart: Channel Up
Comment: Having established a major support area in the vicinity of 1.93, GBP/NZD is now in an up-trend. And while the overall outlook is strongly bullish, there is likely to be a downward correction in the near future. The price is expected to descend to 2.26-2.25 area before the rate makes an attempts to re-test the upper boundary of the channel. However, if demand turns out to be insufficient, there will be a high chance of a deeper decline, to 2.1950, where the monthly S1 merges with the 200-period SMA. Additional support will be at 2.1321, represented by the lowest trading level recorded in June. Still, the sentiment is mostly bullish, being that 58% of open 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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