Dukascopy Bank Team
Dukascopy Bank SA
GBP/CAD 1H Chart: Double Bottom
Comment: Sterling/Loonie cross will soon meet the pattern’s resistance line, which is located at 2.0472. The pair will have to decide, whether to continue trading within the boundaries of the current pattern or to violate the mentioned supply. The first scenario will imply a decline back in the direction of 2.0291, namely the Aug 27-28 lows. This idea is supported by the majority of SWFX market participants, as 55% of them are holding short open positions. On the other hand, in case bulls confirm the pattern to the upside, they will aim at 2.0532 (weekly PP) in the near term, followed by 55/100-hour SMAs at 2.0590/2.0610. Daily technical indicators are in turn sharing bullish views on this currency pair.
USD/SGD 4H Chart: Rectangle
Comment: USD/SGD is also going to meet the pattern’s upper boundary in the next 24 hours, which is placed within 35 pips to the north from the spot price. Here the bullish outlook seems to be more realistic, as more than 66% of all traders are going long on the US Dollar versus its Singapore counterpart. Moreover, both 4H and daily indicators are largely pointing upwards at the moment. However, bullish intentions will be immediately tested by the monthly R3 and weekly R1 resistance at 1.4177/97, in case the longs send the price above the pattern’s upper edge. A failure may trigger losses down to 1.4021 (100-period SMA) in the near term, but bears are mainly targeting the demand zone at 1.3977/52.
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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